""Last-Place Aversion": Evidence and Redistributive Implications"
© Quarterly Journal of Economics, 2013 (forthcoming)
Publication type: Forthcoming article
We present evidence from laboratory experiments showing that individuals are "last-place averse"; participants choose gambles with the potential to move them out of last place that they reject when randomly placed in other parts of the distribution. In money-transfer games, those randomly placed in second-to-last place are the least likely to costlessly give money to the player one rank below. Last-place aversion suggests that low-income individuals might oppose redistribution because it could differentially help the group just beneath them. Using survey data, we show that individuals making just above the minimum wage are the most likely to oppose its increase.
Each author name for a Columbia Business School faculty member is linked to a faculty research page, which lists additional publications by that faculty member.
Each topic is linked to an index of publications on that topic.