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Wage transparency and performance: A real-effort experiment

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  • Greiner, Ben
  • Ockenfels, Axel
  • Werner, Peter

Abstract

Without transparency about peer wages in a real effort experiment, a change of wages does not affect performance. With transparency, however, higher paid workers tend to work more accurately, and lower paid workers shirk more under piece rates.

Suggested Citation

  • Greiner, Ben & Ockenfels, Axel & Werner, Peter, 2011. "Wage transparency and performance: A real-effort experiment," Economics Letters, Elsevier, vol. 111(3), pages 236-238, June.
    • Handle: RePEc:eee:ecolet:v:111:y:2011:i:3:p:236-238
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    More about this item

    Keywords

    Labor market experiments Real effort Social comparison Wage schemes;

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual 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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