Social image concerns and welfare take-up

Friedrichsen's personal website

The article is written jointly with Tobias König and Renke Schmacker. 

Using a laboratory experiment, we present first evidence that social image concerns causally reduce the take-up of an individually beneficial transfer. This reduction is not only statistically but also economically significant and amounts to 30 percentage points. Our design manipulates the informativeness of the take-up decision by varying whether transfer eligibility is based on ability or luck, and how the transfer is financed. We find that subjects avoid the inference both of being low-skilled (ability stigma) and of being willing to live off others (moral stigma). Using a placebo treatment, we exclude other explanations for the observed stigma effects.

Centre for Experimental Research on Fairness, Inequality and Rationality (FAIR) is a unique platform for collaboration between the Centre for Empirical Labour Economics and The Choice Lab.

FAIR collaborates with internationally leading researchers from different social sciences and philosophy, including Nobel Laureate James Heckman, John Bates Clark medal winner Matthew Rabin, and ERC Advanced Grant recipients Armin Falk, Ernst Fehr, and Kenneth Hugdahl. A number of the outstanding scholars have positions at FAIR and are strongly committed to take an active part in the research activities at FAIR. FAIR has a number of outstanding institutional partners on the different projects.

All activities at FAIR