Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/328226 
Year of Publication: 
2025
Series/Report no.: 
IZA Discussion Papers No. 18096
Publisher: 
Institute of Labor Economics (IZA), Bonn
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: 
unfair chances
labor supply
workplace inequality
JEL: 
D63
D90
J22
J31
M52
Document Type: 
Working Paper

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