Inequality reduction and cooperation: Injection of additional resources

Abstract

We experimentally examine if reductions in inequality that do not lower the endowments of the rich raise contributions to public goods in formerly unequal groups. Even injections of additional resources directed to the poor fail to raise cooperation to levels observed in groups that were always equal and have fewer resources. Our results suggest that the poor mimic the unchanging selfish behaviour of the rich, and divert resources to private consumption.