Effects of Complex Tax Incentives on Labor Supply in Japan: A Rational Inattention Perspective

Last registered on March 26, 2025
View Trial History

Pre-Trial

Trial Information

General Information

Title
Effects of Complex Tax Incentives on Labor Supply in Japan: A Rational Inattention Perspective
RCT ID
AEARCTR-0015239
Initial registration date
January 19, 2025

Initial registration date is when the trial was registered.

It corresponds to when the registration was submitted to the Registry to be reviewed for publication.

First published
March 26, 2025, 8:09 AM EDT

First published corresponds to when the trial was first made public on the Registry after being reviewed.

Locations

Country
Japan
Region

Primary Investigator

Name
Yoshiyuki Nakazono
Affiliation
Yokohama City University
Contact Primary Investigator

Other Primary Investigator(s)

PI Name
Jun Takahashi
PI Affiliation
Contact Investigator
PI Name
Kento Tango
PI Affiliation
Contact Investigator

Additional Trial Information

Status
Withdrawn
Start date
2024-08-16
End date
2025-02-28
Keywords
Behavior, Labor
Additional Keywords
JEL code(s)
Secondary IDs
Prior work
This trial does not extend or rely on any prior RCTs.
Abstract
This study conducts a randomized experiment to examine whether providing information about taxation can help individuals optimize their labor supply choices.
External Link(s)

Registration Citation

Citation
Nakazono, Yoshiyuki, Jun Takahashi and Kento Tango. 2025. "Effects of Complex Tax Incentives on Labor Supply in Japan: A Rational Inattention Perspective." AEA RCT Registry. March 26. https://doi.org/10.1257/rct.15239-1.0
Sponsors & Partners
Experimental Details

Interventions

Intervention(s)
Intervention (Hidden)
Intervention Start Date
2024-08-16
Intervention End Date
2025-02-28

Primary Outcomes

Primary Outcomes (end points)
Effects of tax incentives on labor supply
Primary Outcomes (explanation)

Secondary Outcomes

Secondary Outcomes (end points)
Secondary Outcomes (explanation)

Experimental Design

Experimental Design
We conducted an information provision experiment using an online survey platform.
We pre-screened respondents on the basis that they are married, their annual income are not more than 1.03 million yen in 2023, and the expectation of their annual income in 2024 are not more than 1.03 million yen.
The age distribution was representative of Japan's demographics, ranging from 25 to 64 years old.
Experimental Design Details
Randomization Method
Participants in this experiment were randomly assigned to either a treatment group or a control group using stratified randomization, carried out by a professional survey company. Randomization was conducted at the individual level, and no clustering was involved.

Participants were stratified by two demographic variables:

Age groups: categorized as 20–29, 30–39, 40–49, 50–59, and 60–79 years old.

Sex: All participants were female, as explicitly indicated by pre-screening criteria.

Randomization procedure details:

After screening eligible participants (married women whose annual incomes were at or below 1.03 million yen in 2023 and expected to remain so in 2024), the participants were randomly allocated with equal probability within each age stratum to one of the two conditions:

Treatment Group: Participants received explicit information stating, "If you earn 1.20 million yen this year, your amount of income tax will be 8,500 yen." This intervention aimed to correct misconceptions regarding the financial implications of exceeding the 1.03 million yen income threshold.

Control Group: Participants did not receive any additional information or clarification regarding tax implications.

Sample Size and Balance:
Approximately 1,000 participants were enrolled in the randomized trial.

Approximately equal numbers of participants were allocated to treatment and control groups, ensuring balance in baseline characteristics such as income, hours worked, hourly wages, and demographic features.
Randomization Unit
Individuals
Was the treatment clustered?
No

Experiment Characteristics

Sample size: planned number of clusters
4 groups
Sample size: planned number of observations
1,000 individuals
Sample size (or number of clusters) by treatment arms
500 individuals
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
Supporting Documents and Materials
IRB

Institutional Review Boards (IRBs)

IRB Name
Yokohama City University
IRB Approval Date
2024-08-28
IRB Approval Number
2024-3
Analysis Plan

Post-Trial

Post Trial Information

Study Withdrawal

There is information in this trial unavailable to the public. Use the button below to request access.

Request Information

Intervention

Is the intervention completed?
No
Data Collection Complete
Data Publication

Data Publication

Is public data available?
No

Program Files

Program Files
Reports, Papers & Other Materials

Relevant Paper(s)

Reports & Other Materials