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Titel
Insurance and solidarity: evidence from a lab-in-the-field experiment in Cambodia / Friederike Lenel (University of Göttingen), Susan Steiner (Leibniz University of Hannover and IZA) ; IZA Institute of Labor Economics
VerfasserLenel, Friederike ; Steiner, Susan In der Gemeinsamen Normdatei der DNB nachschlagen
KörperschaftForschungsinstitut zur Zukunft der Arbeit In der Gemeinsamen Normdatei der DNB nachschlagen
ErschienenBonn, Germany : IZA Institute of Labor Economics, September 2017
Ausgabe
Elektronische Ressource
Umfang1 Online-Ressource (57 Seiten) : Illustrationen, Diagramme, Karten
SerieDiscussion paper ; no. 10986
URNurn:nbn:de:hbz:5:2-138459 Persistent Identifier (URN)
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Volltexte
Insurance and solidarity: evidence from a lab-in-the-field experiment in Cambodia [4.29 mb]
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Zusammenfassung

This paper investigates the crowding out of informal support among peers by the introduction of formal insurance. We show that the availability of insurance changes people's intrinsic motivation to support others. We report results from a lab-in-the-field experiment conducted in Cambodia. Half of the subjects face the risk to lose a large proportion of their endowment. It is varied whether they can purchase an insurance before the loss is determined. The other half of the subjects can transfer part of their endowment to those who lose. We find that significantly lower transfers are provided to subjects who had the option to purchase insurance but did not use this option than to subjects who did not have the insurance option available. We show that the reduction in transfers is not affected by whether subjects were informed about the possibility of informal support when making their insurance decision. Our findings indicate that the extent of crowding out may be larger than previously thought, because insurance does not only change economic incentives but also affects intrinsic motivations.