%0 Report
        %A Doerrenberg, Philipp
%A Duncan, Denvil
%A Zeppenfeld, Christopher
        %T Circumstantial Risk: Impact of Future Tax Evasion and Labor Supply Opportunities on Risk Exposure
        %D 2014
        %8 2014 Jan
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 7917
        %U https://www.iza.org/publications/dp7917
        %X This paper examines whether risk-taking in a lottery depends on the opportunity to respond to the lottery outcome through additional labor effort and/or tax evasion. Previous empirical attempts to answer this question face identification issues due to self-selection into jobs that facilitate tax evasion and labor effort flexibility. We address these identification issues using a laboratory experiment (N = 180). Subjects have the opportunity to invest earned income in a lottery and, depending on randomly assigned treatment states, have the opportunity to respond to the lottery outcome through evasion and/or extra labor effort. We find strong evidence that ex-post access to labor opportunities reduces ex-ante risk willingness while access to tax evasion has no effect on risk behavior. We discuss possible explanations for this result based on the existing literature.
        %K tax evasion
%K labor supply
%K risk behavior
%K lab experiment