Artikel

Can reference points explain wage rigidity? Experimental evidence

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.

Sprache
Englisch

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

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

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

DOI
doi:10.1186/s12651-021-00284-2
Handle
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Artikel

Beteiligte

  • Koch, Christian
  • Springer

Entstanden

  • 2021

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