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Title:Social comparison and performance: Experimental evidence on the fair-wage effort hypothesis PDF Logo
Authors:Gächter, Simon
Thöni, Christian
Issue Date:2009
Series/Report no.:CeDEx discussion paper series 2009-23
Abstract:We investigate the impact of wage comparisons for worker productivity. We present three studies which all use three-person gift-exchange experiments. Consistent with Akerlof and Yellen's (1990) fair wage-effort hypothesis we find that disadvantageous wage discrimination leads to lower efforts while advantageous wage discrimination does not increase efforts on average. Two studies allow us to measure wage comparison effects at the individual level. We observe strongly heterogeneous wage comparison effects. We also find that reactions to wage discrimination can be attributed to the underlying intentions of discrimination rather than to payoff consequences.
Subjects:fair wage-effort hypothesis
wage comparison
gift exchange
horizontal fairness
discrimination
JEL:J31
J71
C91
C92
Document Type:Working Paper
Appears in Collections:CeDEx Discussion Paper Series, The University of Nottingham

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