Can reference points explain wage rigidity? Experimental evidence

Artikel

I examine whether reference points can provide an explanation for rigid wages in recessions. Even though a recession provides a good reason to adjust wages downward, workers' perception of a "fair wage" may depend on their previous wage, their reference point. Using a laboratory experiment, I test this idea by varying whether initially concluded contracts-and their stipulated wages-can serve as reference points. My experimental results show that with initial contracts workers punish wage cuts even in recessions, leading to considerable more rigid wages. Surprisingly, this is even true without an "objective" justification to feel entitled to initial contracts.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Journal: Journal for Labour Market Research ; ISSN: 2510-5027 ; Volume: 55 ; Year: 2021 ; Issue: 1 ; Pages: 1-17 ; Heidelberg: Springer

Klassifikation und Themen

• Klassifikation: Wirtschaft
• Thema: Wage rigidity ; Reference points ; Gift exchange ; Labor contracts ; Experiments

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Koch, Christian
• Ereignis: Veröffentlichung
• (wer): Springer
• (wo): Heidelberg
• (wann): 2021

Weitere Informationen

• DOI: doi:10.1186/s12651-021-00284-2
• Handle: http://hdl.handle.net/10419/234244
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ