Family financial transfers impact consumption allocation based on labor supply, study finds.
The article explores how altruism affects family decisions about work and money. It shows that when family members help each other financially, taking money from one person and giving it to another doesn't always lead to a fair distribution of resources. The study finds that when people can adjust how much they work based on their income, there is no clear evidence that altruism is being rejected. However, if someone's effort at work is kept private, the fairness of resource distribution can break down because incentives to work hard are not always aligned with sharing resources equally.