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Inequality, Group Cohesion, and Public Good Provision: An Experimental Analysis

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Author Info
Jeffrey Milyo () (Department of Economics, University of Missouri-Columbia)
Jennifer M. Mellor
Lisa Anderson

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Abstract

Recent studies argue that inequality reduces group cohesiveness and dampens support for expenditures on public goods and social programs. In light of competing theoretical explanations and mixed empirical evidence of the effect of inequality on public goods provision, we conduct a test using a public goods experiment. Our design introduces inequality by manipulating the levels and distributions of fixed payments given to subjects for participating in the experiment. When made salient through public information about each individuals standing within the group, inequality in the distribution of fixed payments reduces contributions to the public good for all group members.

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Paper provided by Department of Economics, University of Missouri in its series Working Papers with number 0418.

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Length: 45 pgs.
Date of creation: 27 Dec 2004
Date of revision: 27 Dec 2004
Handle: RePEc:umc:wpaper:0418

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Related research
Keywords: Public Good; Inequality; Free Rider;

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Find related papers by JEL classification:
D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
Z13 - Other Special Topics - - Cultural Economics - - - Social Norms and Social Capital; Social Networks Economic Anthropology

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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Jennifer M. Mellor & Jeffrey Milyo, 2004. "State Social Capital and Individual Health Status," Working Papers 05, Department of Economics, College of William and Mary. [Downloadable!]
    Other versions:
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