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- W2079429981 abstract "Abstract Social insurance such as unemployment insurance is in many countries mandatory for the majority of workers. The extent of such insurance is determined by a political process, i.e. ultimately by the workers themselves. If unemployment were purely accidental then all risk averse workers should vote for a party which promises complete coverage of the unemployment risk. In an experimental investigation on the basis of the Solidarity Game ( Selten & Ockenfels, 1998 ) we compare voluntary ex post-solidarity transfers toward unfortunate low income subjects with mandatory solidarity transfers for which the rules are determined ex ante in a voting procedure. Less than a quarter of our subjects vote for complete coverage of their and others’ risks and less than 12% vote for zero transfers. This result can neither be explained by Expected Utility Theory nor by income based social preferences nor by standard parameterizations of Prospect Theory ( Kahneman and Tversky, 1979 , Tversky and Kahneman, 1992 ). The results are compatible with a warm glow approach ( Andreoni, 1990 ) which extends to mandatory transfers." @default.
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- W2079429981 date "2012-12-01" @default.
- W2079429981 modified "2023-09-25" @default.
- W2079429981 title "How much social insurance do you want? An experimental study" @default.
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- W2079429981 doi "https://doi.org/10.1016/j.joep.2012.07.008" @default.
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