Publication: Fair wages and effort provision: Combining evidence from the lab and the field
Fair wages and effort provision: Combining evidence from the lab and the field
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Cohn, A., Fehr, E., & Goette, L. (2013). Fair wages and effort provision: Combining evidence from the lab and the field (No. 107; Working Paper Series / Department of Economics).
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The presence of workers who reciprocate higher wages with greater effort can have important consequences for labor markets. Knowledge about the determinants of reciprocal effort choices is, however, incomplete. We investigate the role of fairness perceptions and social preferences in workers’ performance in a field experiment in which workers were hired for a one-time job. We show that workers who perceive being underpaid at the base wage increase their performance if the hourly wage increases, while those who feel adequately paid or
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Citations
Cohn, A., Fehr, E., & Goette, L. (2013). Fair wages and effort provision: Combining evidence from the lab and the field (No. 107; Working Paper Series / Department of Economics).