Social Norms and Economic Incentives in the Welfare State

@article{Lindbeck1999SocialNA,
  title={Social Norms and Economic Incentives in the Welfare State},
  author={Assar Lindbeck and Sten Nyberg and J{\"o}rgen W. Weibull},
  journal={Quarterly Journal of Economics},
  year={1999},
  volume={114},
  pages={1-35}
}
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… 
Social Norms and Welfare State Dynamics
The paper analyses the interaction between economic incentives and work norms in the context of social insurance. If the work norm is endogenous in the sense that it is weaker when the population
Optimal Redistribution with Endogenous Social Norms
In this paper, we examine the effect of social norms on redistributive policies, where social norms are reflected in the degree of work participation among the different skill classes. Participation
Optimal Contracting With Endogenous Social Norms
TLDR
It is shown how endogenous social norms alter the effectiveness of monetary incentives, determine whether it is optimal to group agents in a single or two separate organizations, and may give rise to a costly adverse selection problem when agents' sensitivities to social norms are unobservable.
Social norms and optimal incentives in firms
This paper deals with the interplay between economic incen- tives and social norms inrms. We outline a simple model of team production and provide preliminary results on linear incentive schemes in
Optimal income taxation and social norms in the labor market
This paper concerns optimal income taxation in a two-type model extended to allow for social interaction and social norms in the labor market. One norm refers to “normal behavior” with respect to
A Note on Social Norms and Transfers
This note elaborates an extension of the paper "Social Norms, the Welfare State, and Voting" by Lindbeck, Nyberg, and Weibull [1]. That paper studies the effects of a social norm against living off
The Price of a Price : On the Crowding Out of Social Norms
TLDR
It is shown that in a society with altruists and egoists, who all care about social approval, introducing a payment into a voluntary system may actually decrease the amount of blood donated, which may reduce the supply of blood even further.
An Empirical Analysis of the Dynamics of the Welfare State: The Case of Benefit Morale
Does the supply of a welfare state create its own demand? Many economic scholars studying welfare arrangements refer to Say's law and insinuate a self-destructive welfare state. However, little is
Work Norms and the Welfare State
  • G. Corneo
  • Economics
    SSRN Electronic Journal
  • 2011
Many European countries still provide their citizens with social insurance programs of unprecedented generosity. A cultural critique of the welfare state contends that generous social insurance has
...
...

References

SHOWING 1-10 OF 30 REFERENCES
Social Norms, the Welfare State, and Voting
This paper analyzes the interplay between economic incentives and social norms in a public finance context. We assume that to live off one's own work is a social norm, and that the larger the
A Note on Social Norms and Transfers
This note elaborates an extension of the paper "Social Norms, the Welfare State, and Voting" by Lindbeck, Nyberg, and Weibull [1]. That paper studies the effects of a social norm against living off
Welfare State Disincentives with Endogenous Habits and Norms
It is assumed in this paper that habits and social norms constrain the influence of economic disincentives on individual behavior but that these constraints themselves may subsequently be influenced
A Rational Theory of the Size of Government
In a general equilibrium model of a labor economy, the size of government, measured by the share of income redistributed, is determined by majority rule. Voters rationally anticipate the disincentive
A theory of social custom, of which unemployment may be one consequence
This paper examines adherence to social customs. Models of social customs are found to be inherently multi-equilibrial. It is found that social customs which are disadvantageous to the individual may
An Economic Model of Welfare Stigma
Perhaps the most basic assumption of the economic theory of consumer demand is that "more is better than less." Virtually all of the major propositions of consumer theory can, in a certain sense, be
The cement of society : a study of social order
Preface and acknowledgements Introduction: the two problems of social order 1. Collective action 2. Bargaining 3. Social norms 4. Bargaining and collective action 5. Collective action and social
A Theory of Conformity
This paper analyzes a model of social interaction in which individuals care about status as well as "intrinsic" utility (which refers to utility derived directly from consumption). Status is assumed
...
...