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Wage dispersion and workers' effort

Author

Listed:
  • Maria Fernanda Rivas
  • Matthias Sutter
Abstract
We study experimentally the relationship between intra-firm wage dispersion chosen by principals and workers' performance. Principals show a preference for more egalitarian wage schemes, and workers are negatively influenced by high levels of wage inequality.

Suggested Citation

  • Maria Fernanda Rivas & Matthias Sutter, 2008. "Wage dispersion and workers' effort," Working Papers 2008-15, Faculty of Economics and Statistics, Universität Innsbruck.
    • Handle: RePEc:inn:wpaper:2008-15
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    File URL: https://www2.uibk.ac.at/downloads/c4041030/wpaper/2008-15.pdf
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    References listed on IDEAS

    as
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    Cited by:

    1. Axel Ockenfels & Dirk Sliwka & Peter Werner, 2015. "Bonus Payments and Reference Point Violations," Management Science, INFORMS, vol. 61(7), pages 1496-1513, July.

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    More about this item

    Keywords

    wage dispersion; effort; experiment; gift-exchange;
    All these keywords.

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects

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