Academy of Finland
Funding decision
Applicant / Contact person Miettinen, Topi
Organisation Hanken School of Economics
Project title
Causal Study of the Effects of Personal Relative Income Information
Decision No. 332550
Decision date 28.05.2020
Funding period 01.09.2020 - 31.08.2024
Funding 480 000
WebFOCUS Report
Project description
Finland is one of a handful of countries committed to low cost access to income and tax records, but what are the costs and benefits of such openness? To illustrate, a teacher might be pleased to learn that she earns more, relative to other teachers, than she first supposed, or disappointed that she earns less than expected relative to her neighbors. But which matters to her more, and what are the consequences for her? Do her beliefs or preferences or political affiliations change? Do actual behaviors, say labor market choices also change? We use a mixture of experimental methods and Finnish administrative data to provide answers to these questions. The experimental method allow us to estimate and understand the causal effects of relative income information in various reference groups. Ours is one of the most comprehensive such studies undertaken, and has the potential to inform not just the academic literature, but public policy regarding the effects of various inequalities.