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The Social Tax: Redistributive Pressure and Labor Supply

In low-income communities, pressure to share income with others may disincentivize work, distorting labor supply. This paper documents that across countries, social groups that undertake more interpersonal transfers work fewer hours. Using a field experiment, it enables piece-rate factory workers in Côte d’Ivoire to shield income using blocked savings accounts over 3-9 months.

date:  28/10/2022

Keywords: employment, labour supply, labour hours, low-income communities, Cote d’Ivoire

Publisher: NBER – working paper no. 30438
Publication date: Sep 2022
Language: EN

Read the publication in EN