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Fair Wages and Multiple Fairness Standards – A Lab Study of Co-Employment of Hired and Rented Hands

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  • Dorothea Alewell
  • Colette Friedrich
  • Werner Güth
  • Wiebke Kuklys
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    Abstract

    We study the relevance of fairness norms in an experimental scenario in which hired and rented hands are co-employed and stochastic influences and multiple reference points for fairness further increase complexity. Co-employment of hired and rented hands is an example out of a broader class of situations with multiple fairness standards. Co-employment has high political relevance and topicality in Europe, and especially in Germany, where a new equal payment rule affecting temporary work agencies has become law. To shed new light on the relevance of fairness norms in complex settings, we explore theoretically and experimentally the possible fairness considerations of the participants.

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    Bibliographic Info

    Article provided by LMU Munich School of Management in its journal Schmalenbach Business Review.

    Volume (Year): 59 (2007)
    Issue (Month): 1 (January)
    Pages: 2-28

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    Handle: RePEc:sbr:abstra:v:59:y:2007:i:1:p:2-28

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    Related research

    Keywords: Fairness; Principal-agent Problem; Temporary Agency Work; Wage Discrimination;

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    Cited by:
    1. Werner Güth & Martin G. Kocher & Vera Popova, 2010. "Co-employment of permanently and temporarily employed agents," Jena Economic Research Papers 2010-016, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.

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