TY - RPRT AU - Gagnon, Nickolas AU - Bosmans, Kristof AU - Riedl, Arno TI - Unfair Chances and Labor Supply PY - 2025/Aug/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 18096 UR - https://www.iza.org/index.php/publications/dp18096 AB - 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. KW - workplace inequality KW - labor supply KW - unfair chances ER -