What is a fair wage? Reference points, entitlements and gift exchange
Article
Bottino, E., García-Muñoz, T., Goddio, C. and Kujal, P. 2016. What is a fair wage? Reference points, entitlements and gift exchange. Journal of Behavioral and Experimental Economics. 63, pp. 125-135. https://doi.org/10.1016/j.socec.2016.06.002
Type | Article |
---|---|
Title | What is a fair wage? Reference points, entitlements and gift exchange |
Authors | Bottino, E., García-Muñoz, T., Goddio, C. and Kujal, P. |
Abstract | We look at the effect of endogenous and exogenous wage setting institutions on wage offers and effort in the classic gift exchange experiments (Fehr, Kirchsteiger and Riedl, 1993). An exogenously imposed minimum wage at the competitive outcome lowers average wage offers. Workers do not negatively reciprocate and continue to offer high effort. In the endogenous wage setting institution, where workers first make wage proposals, wage offers increase marginally and average effort decreases relative to the baseline when wage proposals are not matched. Relative to the baseline, efficiency decreases in the minimum wage treatment while it marginally increases in the endogenous treatment. We find evidence that the institutional structure has important implications towards wage offers, effort and efficiency. |
Keywords | Exogenous wage setting; Endogenous wage setting; Entitlements; Gift exchange |
Publisher | Elsevier |
Journal | Journal of Behavioral and Experimental Economics |
ISSN | 2214-8043 |
Electronic | 2214-8051 |
Publication dates | |
01 Aug 2016 | |
Online | 07 Jun 2016 |
Publication process dates | |
Deposited | 17 Jun 2016 |
Accepted | 05 Jun 2016 |
Output status | Published |
Accepted author manuscript | License |
Digital Object Identifier (DOI) | https://doi.org/10.1016/j.socec.2016.06.002 |
Web of Science identifier | WOS:000381591400013 |
Language | English |
https://repository.mdx.ac.uk/item/86757
Download files
32
total views8
total downloads1
views this month0
downloads this month