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Does the revenue transparency exacerbate the inequalities in society?

20.01.2016

Does the revenue transparency exacerbate the inequalities in society?

The group of sociologists, psychologists and economists from Yale University has recently published the results of an experiment. They showed that one of the factors contributing to the perpetuation and aggravation of inequality in modern society is the awareness of people about somebody’s wealth. Judging by the behavior of people in this game experiment, the transparency of incomes reduces the tendency of people to cooperate, that, in turn, not only increases inequality, but also inhibits the growth of social welfare.

To understand the reason why the open data about somebody’s wealth exacerbates inequality, especially in the groups with initially high level of inequality, the researchers studied the behavior of the volunteers on individual level.

What have the results of the research shown? Learn more and join the discussion for sharing your opinion on our Transformation Blog.