Social Norms and Economic Incentives in the Welfare State
分析现代福利国家中,工作决策如何受社会规范与经济激励的相互作用影响,并内生决定转移支付规模与规范强度。
This paper analyzes the interplay between social norms and economic incentives in the context of work decisions in the modem 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.