When More Isn't Better: Welfare NGOs and Increasing Income Inequality
Berrone, Pascual; Gelabert, Liliana; Rousseau, Horacio Enrique; Massa-Saluzzo, Federica
Original document: Understanding Community Dynamics in the Study of Grand Challenges: How Nonprofits, Institutional Actors, and the Community Fabric Interact to Influence Income Inequality
How to reduce income inequality? A study challenges the conventional wisdom that more is better when it comes to welfare NGOs. IESE's Pascual Berrone and co-authors find that, after a certain point, having more NGOs actually increases income inequality because they battle for resources. The message is clear: even in altruism, competition can't be ignored.