Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/327712 
Year of Publication: 
2025
Series/Report no.: 
CESifo Working Paper No. 12102
Publisher: 
Munich Society for the Promotion of Economic Research - CESifo GmbH, Munich
Abstract: 
We conduct an online experiment to study how the unfairness of chances leading to wage inequality affects labor supply decisions. We find that, at a given wage, disadvantageous wage inequality reduces labor supply, but whether this inequality stems from fair or unfair chances does not matter. That is, a procedure with fair chances does not compensate for wage inequality. Our results stand in stark contrast to prior empirical evidence showing that individuals care about fair chances when making equity judgments.
Subjects: 
D63
D90
J22
J31
M52
JEL: 
D63
D90
J22
J31
M52
Document Type: 
Working Paper
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