Applied Microeconomics Seminar - Lata Gangadharan (Monash University)

Title: Moving on up: The impact of income mobility on antisocial behaviour

Abstract: While the causes for upward income mobility receive considerable attention, the behavioural impact of the prospect of income mobility has been largely overlooked. Using evidence from a laboratory experiment and individual surveys, we investigate if the prospect of income mobility influences antisocial behaviour. In the experiment, participants can, at a cost, reduce others’ payoffs and low-income participants can move up the income distribution. Our experimental and survey results show that antisocial behaviour is more frequent when mobility is not possible. The experiment also reveals that antisocial behaviour is most often directed towards high-income participants, perpetrated by those with low income.