Equity and efficiency in multi-worker firms: Insights from experimental economics

Arbeitspapier

In this paper, we discuss recent evidence from economic experiments that study the impact of social preferences on workplace behavior. We focus on situations in which a single employer interacts with multiple employees. Traditionally, equity and efficiency have been seen as opposing aims in such work environments: individual pay-for-performance schemes maximize efficiency but might lead to inequitable outcomes. We present findings from laboratory experiments that show under which circumstances partially incomplete contracts can create equitable work environments while at the same time reaching surprisingly efficient outcomes.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: IZA Discussion Papers ; No. 5727

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Compensation Packages; Payment Methods ; Equity, Justice, Inequality, and Other Normative Criteria and Measurement ; Personnel Economics: Compensation and Compensation Methods and Their Effects ; Design of Experiments: Laboratory, Group Behavior ; Labor Contracts
• Thema: incentives ; wage setting ; equity ; gift exchange ; reciprocity ; incomplete contracts ; organizational economics ; laboratory experiments

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Abeler, Johannes ; Altmann, Steffen ; Goerg, Sebastian J. ; Kube, Sebastian ; Wibral, Matthias
• Ereignis: Veröffentlichung
• (wer): Institute for the Study of Labor (IZA)
• (wo): Bonn
• (wann): 2011

Weitere Informationen

• Handle: http://hdl.handle.net/10419/51992
• URN: urn:nbn:de:101:1-201106013413
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ