To add to Ben Crowell's answer there are several slightly different symmetry arguments that lead to the conclusion you seek and can be taken as fulfilling motivation for believing (aside from experimental evidence) that directions normal to a boost direction are unscaled.
But it basically follows from isotropy of space: the idea that there is no preferred direction.
(1) Homogeneity of space (a distinct concept) assumptions and (2) the assumptions of the Lorentz transformation for any given relative speed is a continuous function of the spacetime co-ordinates and (3) that it is a continuous function of the relative speed can all be combined to show that the Lorentz transformation is linear and moreover must have the form:
$$\Lambda = \exp(\eta\,K)\tag{1}$$
where $\eta$, the rapidity or generalized velocity, is some yet to be determined continuous function of the relative speed and $K$ a constant $4\times 4$ matrix. I outline the steps needed to see this in my answer here and other parts of the arguments are in answers that mine link to.
Let's write $K$ as:
$$K=\left(
\begin{array}{cccc}
K_{tt} & K_{tx} & K_{ty} & K_{tz} \\
K_{xt} & K_{xx} & K_{xy} & K_{xz} \\
K_{yt} & K_{yx} & K_{yy} & K_{yz} \\
K_{zt} & K_{zx} & K_{zy} & K_{zz} \\
\end{array}\right)\tag{2}$$
and let's call our boost direction the $x$ direction.
So now we assume space is isotropic. In particular this means that if we rotated our co-ordinates any angle about the $x$ axis, our Lorentz transformation would have to be the same. Now a rotation through angle $\theta$ about $x$ is:
$$R(\theta) = \exp(\theta\,H_x)\tag{3}$$
where
$$H_x = \left(
\begin{array}{cccc}
0 & 0 & 0 & 0 \\
0 & 0 & 0 & 0 \\
0 & 0 & 0 & -1 \\
0 & 0 & 1 & 0 \\
\end{array}\right)\tag{4}$$
and our invariance with respect to rotation is described by:
$$\exp(\theta\,H_x)\,\Lambda\,\exp(-\theta\,H_x) = \Lambda;\quad\forall\theta\in\mathbb{R}\tag{5}$$
a statement which can be shown to be equivalent to:
$$[H_x,\,K] = H_x\,K - K \,H_x = 0\tag{6}$$
(6) can tediously be shown to imply that the most general form of $K$ is now:
$$K=\left(
\begin{array}{cccc}
K_{tt} & K_{tx} & 0 & 0 \\
K_{xt} & K_{xx} & 0 & 0 \\
0 & 0 & K_y & -K_{zy} \\
0 & 0 & K_{zy} & K_y \\
\end{array}\right)\tag{2}$$
Now we apply isotropy of space a second time, and flip our $x$ axis over to the opposite direction by rotating through $180^\circ$ about the $y$ or $z$ axes. Either (or any linear superposition) will do just fine and all give the same result. Given that space is isotropic, the Lorentz transformation must have the same form, but with a subtlety. We need to allow the possibility that the rapidity $\eta$ might be some different value. That is, we have the same kind of motion, but it is in the opposite direction, so we don't yet know what happens to the rapidity in reversing the sense of direction.
Thus we must have:
$$\eta\,\mathrm{diag}(1,\,-1,\,-1,\,1)\,K\,\mathrm{diag}(1,\,-1,\,-1,\,1)^{-1} = \eta^\prime\,K\tag{7}$$
and this, applied to (7) yields several equations that we must consider carefully:
$$K_{tt}\,(\eta -\eta^\prime) = K_{xx}\,(\eta -\eta^\prime) = K_y\,(\eta -\eta^\prime)=0\tag{8}$$
$$K_{tx}\,(\eta +\eta^\prime) = K_{xt}\,(\eta +\eta^\prime) = K_{zy}\,(\eta +\eta^\prime)=0\tag{9}$$
So if any of our $K$ are to be nonzero (i.e. if $\Lambda$ is to be nontrivial) we have two distinct choices: $\eta^\prime = \pm1$.
Both are so far possible, but think what the choice $\eta^\prime = \eta$ would do. We'd have a diagonal Lorentz transformation. That would be a truly weird universe. Boosts would scale space and time co-ordinates, but we'd have, through (9), $K_{xt}=K_{zy}=0$: there'd be no off diagonal terms in the Lorentz transformations and it would not be motion at a velocity as we know it. Instead, everyone would be rooted to the same spot in space, and spatial co-ordinates could be uniformly (isotropically) shrunken and swollen at will (or at least, according to the rapidity) - even without a "Drink Me" bottle. For obvious reasons, Sean Carroll calls this the "Alice in Wonderland" universe. One doesn't need to study this too hard to understand that it simply cannot accord with our everyday experience, at least when we're not under the influence of highly psychotropic substances.
So we are left with the relativistic reciprocity theorem as the only workable alternative $\eta^\prime = -\eta$, i.e. that the rapidity corresponding to relative motion of the same speed but in the opposite direction is the same magnitude but opposite sign. And with this possibility we are forced, from (8), to conclude that:
$$K_{tt}=K_{xx}=K_{yy}=K_{zz}=0\tag{10}$$
and that the only remaining possibility is that the Lorentz transformation is of the form:
$$\Lambda(\eta) = B(\eta)\circ R(\eta) = R(\eta)\circ B(\eta)\tag{11}$$
where $B$ is a boost that leaves the directions orthogonal to the motion untransformed, and $R$ is a rotation about the $x$ direction.
This answers your question, because it shows there is no contraction in directions orthogonal to the motion. To complete the tale and get fully to the Lorentz transformation, though, we tie up the following loose ends.
Since we can, in the physical world impart a rotation without relative motion, we can do so to cancel the rotation part of (11) so that if (11) is a possibility then we can always arrange to have:
$$\Lambda(\eta) = \left(
\begin{array}{cc}
\cosh \left(\eta \sqrt{K_{tx}\,K_{xt}}\right) & \sqrt{\frac{K_{tx}}{K_{xt}}}
\sinh \left(\eta \sqrt{K_{tx}\,K_{xt}}\right) \\
\sqrt{\frac{K_{xt}}{K_{tx}}}
\sinh \left(\eta \sqrt{K_{tx}\,K_{xt}}\right) & \cosh \left(\eta \sqrt{K_{tx}\,K_{xt}}\right) \\
\end{array}
\right)\tag{12}$$
and most of the constants in (12) can be removed by appropriate choice of units, aside from one crucial point: the sign of $K_{xt}\,K_{tx}$. If this sign is negative, then the Lorentz tranformation is a rotation, and in this case we could therefore always find a boost that would reverse the time direction of the vector joining any two events. It would be very hard to make sense of causality in such a universe, since not only would simultaneity be relative, but also the order of causally linked events. Thus, finally, only the wonted and beloved Lorentz transformation, free of transformation on spatial co-ordinates orthogonal to the boost, remains as the one possibility consistent with our experimental observation.