Dishonesty when the game is unfair: Experimental evidence for the effect of economic inequality on tax evasion and cheating

Although the link between economic inequality and dishonest behavior is well-established in the literature, their causal relation is still unclear. Here we investigate the causal link between economic inequality and dishonest behavior in a simulated society with high or low economic inequality, while holding middle-class status of the participants constant across conditions. Study 1 (N = 479) focuses on tax evasion, showing that high (vs. low) economic inequality increases the tendency to not declare taxable income. Study 2 (N = 228) analyzes cheating behavior, showing that participants under high (vs. low) economic inequality cheat more in order to increase their income. Together, the studies provide experimental evidence that economic inequality plays a causal role in dishonest behaviors, such as tax evasion and cheating.