Fair wages when employers face the risk of losing money
AbstractWhen employers can incur losses from the labor relationship in a gift exchange game, they offer lower wages on average than in a no-loss relationship. Taking employers’ risk of losing money into account, employees exert more effort per wage unit.
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Bibliographic InfoArticle provided by Elsevier in its journal Economics Letters.
Volume (Year): 117 (2012)
Issue (Month): 3 ()
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Web page: http://www.elsevier.com/locate/ecolet
Efficiency wage; Social comparison; Inequity aversion; Loss aversion; Strategic risk;
Other versions of this item:
- Karina Gose & Abdolkarim Sadrieh, 2011. "Fair Wages When Employers Face the Risk of Losing Money," FEMM Working Papers 110009, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
- C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
- D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
- J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
- M52 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
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