Economic Theory

, Volume 39, Issue 3, pp 425–441

Rewarding effort

Research Article

DOI: 10.1007/s00199-007-0320-x

Cite this article as:
Cappelen, A.W. & Tungodden, B. Econ Theory (2009) 39: 425. doi:10.1007/s00199-007-0320-x

Abstract

According to liberal egalitarian ethics, individuals should be rewarded for factors under their control (the principle of responsibility), but not for factors outside their control (the principle of equalization). The paper analyses the effects of two requirements on how to reward effort within a liberal egalitarian framework: the requirement of equal reward and the requirement of solidarity. We show that it is impossible to establish a framework that satisfies the principle of equalization in all respects, and that a generalized version of the egalitarian equivalent mechanism is a very plausible liberal egalitarian approach.

Keywords

Liberal egalitarianismResponsibilityEqualizationEgalitarian equivalent mechanism

JEL Classification

D63D71

Copyright information

© Springer-Verlag 2007

Authors and Affiliations

  1. 1.The Norwegian School of Economics and Business AdministrationBergenNorway
  2. 2.Norwegian School of Economics and Business Administration and Chr. Michelsen InstituteBergenNorway