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| Author: | Hennig-Schmidt, H. Rockenbach, B. Sadrieh, A. |
| Title: | In search of workers' real effort reciprocity - A field and a laboratory experiment |
| Journal: | Journal of the European Economic Association
2010 : JUN, VOL. 8:4, p. 817-837 |
| Index terms: | employees pay work Germany |
| Language: | eng |
| Abstract: | This study presents a field experiment to assess the effect of own and peer wage variations on actual work effort (here as: w-e.) of employees with hourly wages. W-e. neither reacts to an increase of the own wage, nor to a positive or negative peer comparison. This result seems at odds with numerous laboratory experiments showing a clear own wage sensitivity on effort. Through an additional real-effort laboratory experiment it is shown that explicit cost and surplus information enabling an exact calculation of an employer's surplus from the work contract is a crucial prerequisite for a positive wage-effort relation. |
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