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Social Norms and Economic Incentives in the Welfare State
Stockholm University, Faculty of Social Sciences, Department of Economics.ORCID iD: 0000-0003-0140-3031
Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies.
1999 (English)In: Quarterly Journal of Economics, ISSN 0033-5533, E-ISSN 1531-4650, Vol. 114, no 1, p. 1-35Article in journal (Refereed) Published
Abstract [en]

This paper analyzes the interplay between social norms and economic incentives in the context of work decisions in the modern welfare state. We assume that to live off one's own work is a social norm, and that the larger the population share adhering to this norm, the more intensely it is felt by the individual. Individuals face two choices: one economic, whether to work or live off public transfers; and one political, how large the transfer should be. The size of the transfer and the intensity of the social norm are determined endogenously in equilibrium.

Place, publisher, year, edition, pages
1999. Vol. 114, no 1, p. 1-35
National Category
Economics
Research subject
Economics
Identifiers
URN: urn:nbn:se:su:diva-163366OAI: oai:DiVA.org:su-163366DiVA, id: diva2:1274052
Available from: 2018-12-27 Created: 2018-12-27 Last updated: 2019-06-27Bibliographically approved

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