Please be advised that the starting time has changed!
This paper investigates the hypothesis that solidarity obligations hinder entrepreneurial activity and thus investment and long term economic progress. We conduct a field experiment and a real effort experiment with small entrepreneurs in Burkina Faso in which participants are made a lucrative job offer under different treatment conditions. Results show that implicit and explicit solidarity obligations as well as the expectation of future demands for financial support lead to a significant reduction in entrepreneurial activity.
For more information please visit http://www.creedexperiment.nl/creed/seminars.php