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

Author

Listed:
  • Dorothea Alewell
  • Colette Friedrich
  • Werner Güth
  • Wiebke Kuklys

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.

Suggested Citation

  • Dorothea Alewell & Colette Friedrich & Werner Güth & Wiebke Kuklys, 2007. "Fair Wages and Multiple Fairness Standards – A Lab Study of Co-Employment of Hired and Rented Hands," Schmalenbach Business Review (sbr), LMU Munich School of Management, vol. 59(1), pages 2-28, January.
    • Handle: RePEc:sbr:abstra:v:59:y:2007:i:1:p:2-28
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    Citations

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    Cited by:

    1. Angelova, Vera & Güth, Werner & Kocher, Martin G., 2012. "Co-employment of permanently and temporarily employed agents," Labour Economics, Elsevier, vol. 19(1), pages 48-58.

    More about this item

    Keywords

    Fairness; Principal-agent Problem; Temporary Agency Work; Wage Discrimination;
    All these keywords.

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D3 - Microeconomics - - Distribution

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