Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/89827 
Year of Publication: 
2013
Series/Report no.: 
IZA Discussion Papers No. 7802
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
This article examines whether social comparisons have behavioral effects on workers' performance when a firm can choose workers' wages or let them choose their own. Firms can delegate the wage decision to neither, one or both workers in the firm. We vary the information workers receive, finding that social comparisons concerning both wages and decision rights affect workers' performance. Moreover, the relative effect of discrimination in relation to decision rights is larger than in relation to wage. We find these treatment effects with both stated effort and a real-effort task, suggesting that both approaches may yield similar results.
Subjects: 
delegation
gift-exchange
experiment
JEL: 
C91
Document Type: 
Working Paper

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