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Fairness Spillovers – The Case of Taxation

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  • Thomas Cornelißen

    ()
    (University College, London)

  • Oliver Himmler

    ()
    (Max Planck Institute for Research on Collective Goods, Bonn)

  • Tobias Koenig

    ()
    (Hannover University, Department of Economics)

Abstract

It is standardly assumed that individuals react to perceived unfairness or norm violations in precisely the same area or relationship where the original offense has occurred. However, grievances over being exposed to injustice may have even broader consequences and also spill over to other contexts, causing non-compliant behavior there. We present evidence that such 'fairness spillovers' can incur large economic costs: A belief that there is unfairness in taxation in the sense that the rich don't pay enough taxes is associated with a twenty percent higher level of paid absenteeism from work.

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Bibliographic Info

Paper provided by Max Planck Institute for Research on Collective Goods in its series Working Paper Series of the Max Planck Institute for Research on Collective Goods with number 2012_17.

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Date of creation: Aug 2012
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Handle: RePEc:mpg:wpaper:2012_17

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Keywords: fairness; Beliefs; Taxation; Work Morale;

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Citations

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Cited by:
  1. Schneck, Stefan, 2013. "My Wage is Unfair! Just a Feeling or Comparison with Peers?," EconStor Preprints 70096, ZBW - German National Library of Economics.
  2. Okudaira, Hiroko & Ohtake, Fumio & Kume, Koichi & Tsuru, Kotaro, 2013. "What does a temporary help service job offer? Empirical suggestions from a Japanese survey," Journal of the Japanese and International Economies, Elsevier, vol. 28(C), pages 37-68.
  3. Ziebarth, Nicolas R., 2013. "Long-term absenteeism and moral hazard—Evidence from a natural experiment," Labour Economics, Elsevier, vol. 24(C), pages 277-292.

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