Abstract
We investigate the causal effect of wage inequality, unfair procedures, and (gender) discrimination on labor supply decisions of workers. We conduct an experiment in the laboratory and on an online platform, where workers individually engage in the same task and are individually paid a piece-rate wage. Workers receive information about their own wage and the wage of another worker as well as on the procedure leading to these wages. A worker’s labor supply decision only affects him- or herself. That is, providing less labor reduces the worker’s earnings but leaves unaffected the other workers’ earnings and the employer’s earnings.