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Industrial fatigue Redux

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  • Nocetti, Diego

Abstract

This paper presents a gift-exchange labor market model in which workers are prone to exhaustion. Although norms of reciprocity and fairness indicate that firms and workers must exchange 'gifts' in the form of higher wages and higher effort respectively, these incentives are mitigated by the evolution of fatigue and, therefore, the dynamic efficiency wage is lower than its static counterpart.

Suggested Citation

  • Nocetti, Diego, 2008. "Industrial fatigue Redux," Economics Letters, Elsevier, vol. 99(2), pages 286-289, May.
    • Handle: RePEc:eee:ecolet:v:99:y:2008:i:2:p:286-289
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    References listed on IDEAS

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    6. Uri Gneezy & John A List, 2006. "Putting Behavioral Economics to Work: Testing for Gift Exchange in Labor Markets Using Field Experiments," Econometrica, Econometric Society, vol. 74(5), pages 1365-1384, September.
    7. Ramaswamy, Ramana & Rowthorn, Robert E, 1991. "Efficiency Wages and Wage Dispersion," Economica, London School of Economics and Political Science, vol. 58(232), pages 501-514, November.
    8. Fehr, Ernst & Kirchler, Erich & Weichbold, Andreas & Gächter, Simon, 1998. "When Social Norms Overpower Competition: Gift Exchange in Experimental Labor Markets," Journal of Labor Economics, University of Chicago Press, vol. 16(2), pages 324-351, April.
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    Cited by:

    1. Dragone, Davide, 2009. "I am getting tired: Effort and fatigue in intertemporal decision-making," Journal of Economic Psychology, Elsevier, vol. 30(4), pages 552-562, August.
    2. Jorge González Chapela, 2018. "Physical Work Intensity and the Split Workday: Theory and Evidence from Spain," Journal of Labor Research, Springer, vol. 39(3), pages 329-353, September.

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