Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/305559 
Year of Publication: 
2024
Series/Report no.: 
CESifo Working Paper No. 11317
Publisher: 
CESifo GmbH, Munich
Abstract: 
Are the effects of tax aversion on labor supply symmetric? In a real-effort online experiment, participants are exposed to manipulated wages and taxes after first experiencing the same reference wage. More participants change their labor supply when encountering a tax increase than when experiencing an equivalent wage decrease. However, there is no significant difference in labor supply change between the groups that received tax decreases and wage increases. Tax averse behavior existing only in the presence of net wage decreases implies asymmetric labor supply responses to taxation.
Subjects: 
tax aversion
loss aversion
labor supply asymmetry
online experiment
JEL: 
H20
H30
D91
J22
Document Type: 
Working Paper
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