This paper shows the results of an experiment aiming to test the effect of taxation on the labour supply. Differently from previous experiments [Le´vy-Garboua, L., Masclet, D., & Montmarquette, C. (2005). Fiscalite´ et offre de travail: Une e´tude experimentale. CIRANO, Montre´al, working paper 2005, s-23; Sillamaa, M.A., (1999). Taxpayer behavior in response to taxation: Comment and new experimental evidence. Journal of Accounting and Public Policy, 18; Sutter, M., & Weck-Hannemann, H. (2003). Taxation and the veil of ignorance – A real effort experiment of the Laffer curve. Public Choice, 115; Swenson, C.W., (1988). Taxpayer behavior in response to taxation. An experimental analysis. Journal of Accounting and Public Policy, 7], in our experiment the revenue of taxation is not left unaccounted for but employed – more realistically – to finance public goods and insurance against risk (i.e., a Welfare State). The result is a slight increase in the labour supply. This behaviour is the opposite of what was shown in the experiments quoted above, but is consistent with a theoretical model suggested by Bird in 2001 [Bird, E.J., (2001). Does the welfare state induce risktaking? Journal of Public Economics, 80]. The use of the tax revenue appears to be relevant for subjects’ reaction to tax levies.

Ortona, G., Ottone, S., Ponzano, F., & Scacciati, F. (2008). Labour supply in presence of taxation financing public services. An experimental approach. JOURNAL OF ECONOMIC PSYCHOLOGY, 29(5), 619-631 [10.1016/j.joep.2007.07.006].

Labour supply in presence of taxation financing public services. An experimental approach

OTTONE, STEFANIA;
2008

Abstract

This paper shows the results of an experiment aiming to test the effect of taxation on the labour supply. Differently from previous experiments [Le´vy-Garboua, L., Masclet, D., & Montmarquette, C. (2005). Fiscalite´ et offre de travail: Une e´tude experimentale. CIRANO, Montre´al, working paper 2005, s-23; Sillamaa, M.A., (1999). Taxpayer behavior in response to taxation: Comment and new experimental evidence. Journal of Accounting and Public Policy, 18; Sutter, M., & Weck-Hannemann, H. (2003). Taxation and the veil of ignorance – A real effort experiment of the Laffer curve. Public Choice, 115; Swenson, C.W., (1988). Taxpayer behavior in response to taxation. An experimental analysis. Journal of Accounting and Public Policy, 7], in our experiment the revenue of taxation is not left unaccounted for but employed – more realistically – to finance public goods and insurance against risk (i.e., a Welfare State). The result is a slight increase in the labour supply. This behaviour is the opposite of what was shown in the experiments quoted above, but is consistent with a theoretical model suggested by Bird in 2001 [Bird, E.J., (2001). Does the welfare state induce risktaking? Journal of Public Economics, 80]. The use of the tax revenue appears to be relevant for subjects’ reaction to tax levies.
Articolo in rivista - Articolo scientifico
taxation; labour supply; real effort experiment
English
Ortona, G., Ottone, S., Ponzano, F., & Scacciati, F. (2008). Labour supply in presence of taxation financing public services. An experimental approach. JOURNAL OF ECONOMIC PSYCHOLOGY, 29(5), 619-631 [10.1016/j.joep.2007.07.006].
Ortona, G; Ottone, S; Ponzano, F; Scacciati, F
File in questo prodotto:
Non ci sono file associati a questo prodotto.

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/10281/5440
Citazioni
  • Scopus 12
  • ???jsp.display-item.citation.isi??? 8
Social impact