Is Informal Redistribution Costly? Evidence from a Lab-in-the-Field Experiment in Senegal

In Sub-Saharan Africa, individuals frequently transfer a substantial share of their resources to members of their social networks. Social pressure to redistribute, however, can induce disincentive effects on resource allocation decisions. This paper measures and characterizes the costs of redistribu...

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Bibliographic Details
Main Authors:	Botlz, Marie, Marazyan, Karine, Villar, Paola
Format:	Journal Article
Published:	Published by Oxford University Press on behalf of the World Bank 2021
Subjects:	INCOME OBSERVABILITY REDISTRIBUTION EXTENDED FAMILY WILLINGNESS TO PAY INCOME DISTRIBUTION INFORMAL ECONOMY MIGRATION
Online Access:	http://hdl.handle.net/10986/36151

id	okr-10986-36151
recordtype	oai_dc
spelling	okr-10986-361512021-08-18T05:10:38Z Is Informal Redistribution Costly? Evidence from a Lab-in-the-Field Experiment in Senegal Botlz, Marie Marazyan, Karine Villar, Paola INCOME OBSERVABILITY REDISTRIBUTION EXTENDED FAMILY WILLINGNESS TO PAY INCOME DISTRIBUTION INFORMAL ECONOMY MIGRATION In Sub-Saharan Africa, individuals frequently transfer a substantial share of their resources to members of their social networks. Social pressure to redistribute, however, can induce disincentive effects on resource allocation decisions. This paper measures and characterizes the costs of redistributive pressure by estimating individuals’ willingness to pay (WTP) to hide their income. The study estimates a social tax due to informal redistribution of 10 percent. Moreover, it shows that individuals are willing to escape from the redistributive pressure exerted mainly by extended family members. 2021-08-17T18:35:03Z 2021-08-17T18:35:03Z 2020-02 Journal Article World Bank Economic Review 1564-698X http://hdl.handle.net/10986/36151 CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Published by Oxford University Press on behalf of the World Bank Publications & Research Publications & Research :: Journal Article Africa Africa Western and Central (AFW) Senegal
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
topic	INCOME OBSERVABILITY REDISTRIBUTION EXTENDED FAMILY WILLINGNESS TO PAY INCOME DISTRIBUTION INFORMAL ECONOMY MIGRATION
spellingShingle	INCOME OBSERVABILITY REDISTRIBUTION EXTENDED FAMILY WILLINGNESS TO PAY INCOME DISTRIBUTION INFORMAL ECONOMY MIGRATION Botlz, Marie Marazyan, Karine Villar, Paola Is Informal Redistribution Costly? Evidence from a Lab-in-the-Field Experiment in Senegal
geographic_facet	Africa Africa Western and Central (AFW) Senegal
description	In Sub-Saharan Africa, individuals frequently transfer a substantial share of their resources to members of their social networks. Social pressure to redistribute, however, can induce disincentive effects on resource allocation decisions. This paper measures and characterizes the costs of redistributive pressure by estimating individuals’ willingness to pay (WTP) to hide their income. The study estimates a social tax due to informal redistribution of 10 percent. Moreover, it shows that individuals are willing to escape from the redistributive pressure exerted mainly by extended family members.
format	Journal Article
author	Botlz, Marie Marazyan, Karine Villar, Paola
author_facet	Botlz, Marie Marazyan, Karine Villar, Paola
author_sort	Botlz, Marie
title	Is Informal Redistribution Costly? Evidence from a Lab-in-the-Field Experiment in Senegal
title_short	Is Informal Redistribution Costly? Evidence from a Lab-in-the-Field Experiment in Senegal
title_full	Is Informal Redistribution Costly? Evidence from a Lab-in-the-Field Experiment in Senegal
title_fullStr	Is Informal Redistribution Costly? Evidence from a Lab-in-the-Field Experiment in Senegal
title_full_unstemmed	Is Informal Redistribution Costly? Evidence from a Lab-in-the-Field Experiment in Senegal
title_sort	is informal redistribution costly? evidence from a lab-in-the-field experiment in senegal
publisher	Published by Oxford University Press on behalf of the World Bank
publishDate	2021
url	http://hdl.handle.net/10986/36151
_version_	1764484611397648384

Is Informal Redistribution Costly? Evidence from a Lab-in-the-Field Experiment in Senegal

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