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• W2183670493 abstract "The eect of inequality on economic development is often debated in the development literature with many …nding that inequality among dierent groups in a society has a negative impact on economic growth while others …nd the opposite result. Our study investigates a behavioral phenomenon which may not only be associated with the exis- tence of such inequality but may also signi…cantly exacerbate any adverse consequences of inequality for growth. In particular we investigate whether or not individuals exhibit a discouragement eect in the face of inequality that leads to lower work eort. If such an eect exists it provides a mechanism for converting even idiosyncratic inequality into sustained inequality with adverse consequences for the individuals being aected by the inequality and the economy as a whole. We investigate this phenomenon using an economic experiment to allow us to cleanly vary the nature of inequality and to allow us to directly observe several characteristics of the workers. We …nd robust support for the existence of a discouragement eect lending credibility to the claims that such an eect would exist in external situations among workers confronted with disadvantageous inequality." @default.
• W2183670493 created "2016-06-24" @default.
• W2183670493 creator A5035300858 @default.
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• W2183670493 date "2009-01-01" @default.
• W2183670493 modified "2023-09-26" @default.
• W2183670493 title "Incentive Eects of Inequality and Economic Development" @default.
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• W2183670493 hasPublicationYear "2009" @default.
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