Inequality and Riots – Experimental Evidence

Inequality and Riots – Experimental Evidence

We study the relationship between inequality and inter-groups conflicts (riots), focussing on social inequality. Disadvantaged societal groups experience discrimination and thus have limited access to some social and labour resources like education or employment. First, we experimentally investigate whether social inequality is a driving force of inter-group conflicts. Second, we investigate th...

Does Pay Inequality Affect Worker Effort? Experimental Evidence

We study worker behavior in an efficiency-wage environment where co-workers’ wages can influence a worker’s effort. Theoretically, we show that an increase in workers’ responsiveness to co-workers’ wages should lead profit-maximizing firms to compress wages. Our laboratory experiments, on the other hand, show that --while workers’ effort choices are highly sensitive to their own wages-effort is...

Inequality : Evidence , Causes , and Solutions

Urban Riots in Sweden

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Does Income Inequality Lead to Consumption Inequality? Evidence and Theory1

Using data from the Consumer Expenditure Survey, we ...rst document that the recent increase in income inequality in the United States has not been accompanied by a corresponding rise in consumption inequality. Much of this divergence is due to di¤erent trends in within-group inequality, which has increased signi...cantly for income but little for consumption. We then develop a simple framework...