Arbeitspapier

Social comparison and performance: experimental evidence on the fair wage-effort hypothesis

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

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 4687

Classification
Wirtschaft
Wage Level and Structure; Wage Differentials
Labor Discrimination
Design of Experiments: Laboratory, Individual
Design of Experiments: Laboratory, Group Behavior
Subject
Fair wage-effort hypothesis
wage comparison
gift exchange
horizontal fairness
discrimination
Lohn
Gerechtigkeit
Soziale Beziehungen
Leistungsmotivation
Arbeitsproduktivität
Austauschtheorie (Soziologie)
Test

Event
Geistige Schöpfung
(who)
Gächter, Simon
Thöni, Christian
Event
Veröffentlichung
(who)
Institute for the Study of Labor (IZA)
(where)
Bonn
(when)
2010

Handle
Last update
10.03.2025, 11:46 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Gächter, Simon
  • Thöni, Christian
  • Institute for the Study of Labor (IZA)

Time of origin

  • 2010

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