Fair Compensations for Heterogeneous Labor Inputs

This study provides novel experimental evidence about normative preferences in situations with heterogeneous labor inputs. For this purpose we conduct an experiment in which impartial spectators choose the fair distribution of output in different scenarios. We argue that these preferences can be explained by an extended version of the ‘equity principle’. We find that spectators reward labor inputs more when they assess them as more tedious, toilsome, or time demanding. Spectators with high levels of education or income also value how intellectually demanding or productive a task is. Additionally, we show that the spectators’ choices are inconsistent with consequentialism