Gender Discriminatory Taxes and Labor Supply
In this paper, we examine the impact of discriminatory taxation on individual labor supply decisions. Using the controlled environment of an experimental laboratory, we manipulate both outcome fairness as well as procedural fairness of taxation between participants.
While mere outcome inequality does not influence labor supply decisions significantly, we find evidence of a strong negative effect of gender-based discrimination on labor supply by both female and male participants. The results further demonstrate a positive effect of fairness perceptions on individual labor supply decisions. However, we find severe differences in fairness perceptions by gender when comparing preferential and disadvantageous outcome inequalities.