Redistribution and Group Participation: Comparative Experimental Evidence from Africa and the UK
Abstract:
We design an original laboratory experiment to investigate whether redistributive actions hinder the formation of Pareto-improving groups. We test, in an anonymous setting with no feedback, whether people choose to destroy or steal the endowment of others and whether they choose to give to others, when granted the option. We then test whether subjects join a group that increases their endowment but exposes them to redistribution. We conduct the experiment in three very different settings with a priori different norms of pro-social behavior: a university town in the UK, the largest slum in Nairobi, Kenya and rural Uganda. We find a lot of commonality but also large differences between sites. UK subjects behave in a more selfish and strategic way -- giving less, stealing more. Kenyan and Ugandan subjects behave in a more altruistic and less strategic manner. However, pro-social norms are not always predictive of joining behavior. African subjects are less likely to join a group when destruction or stealing is permitted. It is as if they are less trusting even though they are more trustworthy. These findings contradict the view that African underdevelopment is due to a failure of generalized morality.
Speaker Bio:
Marcel Fafchamps is senior fellow at the Freeman Spogli Institute for International Studies and member of the Center on Democracy, Development and the Rule of Law. Before joining FSI, he served as Professor of Development Economics at Oxford University and as Deputy Director of the Center for the Study of African Economies. Before that he taught at Stanford University. He also worked for the International Labour Organization in Africa. His research focuses on market institutions and social networks, writ large. Fafchamps holds a PhD from UC Berkeley and degrees in Law and in Economics from the Catholic University of Louvain.
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Marcel Fafchamps is a Senior Fellow Emeritus at the Freeman Spogli Institute for International Studies (FSI) and a member of the Center on Democracy, Development and the Rule of Law. Previously, he was the Satre Family Senior Fellow at FSI. Fafchamps is a professor (by courtesy) for the Department of Economics at Stanford University. His research interests include economic development, market institutions, social networks, and behavioral economics — with a special focus on Africa and South Asia.
Prior to joining FSI, from 1999-2013, Fafchamps served as professor of development economics in the Department of Economics at Oxford University. He also served as deputy director and then co-director of the Center for the Study of African Economies. From 1989 to 1996, Fafchamps was an assistant professor with the Food Research Institute at Stanford University. Following the closure of the Institute, he taught for two years at the Department of Economics. For the 1998-1999 academic year, Fafchamps was on sabbatical leave at the research department of the World Bank. Before pursuing his PhD in 1986, Fafchamps was based in Addis Ababa, Ethiopia, for 5 years during his employment with the International Labour Organization, a United Nations agency that oversees employment, income distribution, and vocational training in Africa.
He has authored two books: Market Institutions in Sub-Saharan Africa: Theory and Evidence (MIT Press, 2004) and Rural Poverty, Risk, and Development (Elgar Press, 2003), and has published numerous articles in academic journals.
Fafchamps served as the editor-in-chief of Economic Development and Cultural Change until 2020. Previously, he had served as chief editor of the Journal of African Economies from 2000 to 2013, and as associate editor of the Economic Journal, the Journal of Development Economics, Economic Development and Cultural Change, the American Journal of Agricultural Economics, and the Revue d'Economie du Développement.
He is a research associate of the National Bureau of Economic Research, an affiliated professor with J-PAL, a senior fellow with the Bureau for Research and Economic Analysis of Development, a research fellow with IZA, Germany, and with the Center for Economic and Policy Research, UK, and an affiliate with the University of California’s Center for Effective Global Action.
Fafchamps has degrees in Law and in Economics from the Université Catholique de Louvain. He holds a PhD in Agricultural and Resource Economics from the University of California, Berkeley.
