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Trial Title Income Mobility, Redistribution and Trust Current Inequality, Future Prospects, and Trust: Evidence from a Laboratory Experiment
Trial Status in_development completed
Abstract In societies with stagnant inequality, perceived economic unfairness erodes interpersonal trust. We conducted a lab experiment to examine how relevant features of two mechanisms for reducing inequality -- income mobility and redistribution -- affect trust. Mobility equalizes opportunities by allowing movement up or down the income ladder, reducing expected income disparities over time but maintaining actual inequality. Redistribution equalizes outcomes by narrowing actual income gaps through taxation. We compare these mechanisms employing a two-period Trust Minigame with three conditions: i) a control with high endowment inequality; ii) a treatment reducing actual endowment dispersion to equalize outcomes; iii) a second treatment using stochastic rank reversal to reduce expected endowment dispersion and equalize opportunities. Based on inequity aversion models, we expect the outcome-equalizing treatment to foster higher aggregate trust than the opportunity-equalizing treatment. This paper compares two stylized environments in a pre-registered experiment based on a Trust Mini Game played over two independent periods. One environment features a smaller current endowment gap, implemented in the Low Inequality treatment. The other features better ex ante prospects under unchanged current inequality, implemented in the Rank Reversal treatment, where a Poor receiver may become Rich in period 2, and vice versa. The two treatments are calibrated to imply the same expected dispersion of endowments across the two periods of the game. We therefore focus on whether first-period behavior responds more strongly to a smaller current gap or to better prospects ex ante, before any rank reversal is realized.
JEL Code(s) C92; D31; D63 C92; D31; D63.
Last Published December 01, 2025 12:00 PM May 16, 2026 06:40 AM
Study Withdrawn No
Intervention Completion Date December 12, 2025
Data Collection Complete Yes
Final Sample Size: Number of Clusters (Unit of Randomization) 12 laboratory sessions.
Was attrition correlated with treatment status? No
Final Sample Size: Total Number of Observations 240 subjects.
Final Sample Size (or Number of Clusters) by Treatment Arms 4 sessions per treatment arm: 4 sessions High Inequality, 4 sessions Low Inequality, 4 sessions rank reversal
Public Data URL https://drive.google.com/file/d/1tX9UoRMmCNX-_w5JpLoCD_zEpkhsI2qQ/view?usp=sharing
Is there a restricted access data set available on request? No
Program Files Yes
Program Files URL https://drive.google.com/file/d/1tX9UoRMmCNX-_w5JpLoCD_zEpkhsI2qQ/view?usp=sharing
Data Collection Completion Date December 12, 2025
Is data available for public use? Yes
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Post Trial Documents

Field Before After
Description Working Paper
File
Current Inequality Future Prospects and Trust.pdf
MD5: d2d3b4c3ee00e1fe3e23a51939da2284
SHA1: db0c466a223d9e5039767a3bc5e8156916ee0c1c
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