The Effect of Income Tax on the Motivation to Work Depends on People’S Cultural Philosophies

Does the presence of income taxes affect productivity? We conducted an incentive-compatible labor experiment that controlled for net wages. Taxes generally decreased persistence and accuracy (and thus earnings) in a counting task. However, among Egalitarian-Communitarians (who chronically loathe inequality and endorse government intervention), taxes actually increased productivity.



Citation:

Scott Rick, Gabriele Paolacci, and Katherine Burson (2013) ,"The Effect of Income Tax on the Motivation to Work Depends on People’S Cultural Philosophies", in NA - Advances in Consumer Research Volume 41, eds. Simona Botti and Aparna Labroo, Duluth, MN : Association for Consumer Research, Pages: .

Authors

Scott Rick, University of Michigan, USA
Gabriele Paolacci, Erasmus University Rotterdam, The Netherlands
Katherine Burson, University of Michigan, USA



Volume

NA - Advances in Consumer Research Volume 41 | 2013



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