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Fairness, Reciprocity, and Wage Rigidity

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    Abstract

    This paper contains a review of work on wage rigidity. The work includes field studies, and economic experiments, and psychological surveys. Economists have done the field studies and experiments, and management scientists and experimental psychologists have done the surveys.

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    File URL: http://cowles.econ.yale.edu/P/cd/d13b/d1383.pdf
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    Bibliographic Info

    Paper provided by Cowles Foundation for Research in Economics, Yale University in its series Cowles Foundation Discussion Papers with number 1383.

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    Length: 36 pages
    Date of creation: 01 Oct 2002
    Date of revision:
    Handle: RePEc:cwl:cwldpp:1383

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    Postal: Yale University, Box 208281, New Haven, CT 06520-8281 USA
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    Web page: http://cowles.econ.yale.edu/
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    Related research

    Keywords: Wage rigidity; Morale; Fairness; Reciprocity;

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    References

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    1. Ernst Fehr & Simon Gachter & Georg Kirchsteiger, 1997. "Reciprocity as a Contract Enforcement Device: Experimental Evidence," Econometrica, Econometric Society, vol. 65(4), pages 833-860, July.
    2. Fehr, Ernst & Kirchsteiger, George & Riedl, Arno, 1993. "Does Fairness Prevent Market Clearing? An Experimental Investigation," The Quarterly Journal of Economics, MIT Press, vol. 108(2), pages 437-59, May.
    3. Joseph G. Altonji & Paul J. Devereux, 1999. "The Extent and Consequences of Downward Nominal Wage Rigidity," NBER Working Papers 7236, National Bureau of Economic Research, Inc.
    4. Fehr, Ernst & Klein, Alexander & Schmidt, Klaus M., 2001. "Fairness, Incentives and Contractual Incompleteness," CEPR Discussion Papers 2790, C.E.P.R. Discussion Papers.
    5. Burda, M. & Güth, W. & Kirchsteiger, G. & Uhlig, H.F.H.V.S., 1998. "Employment Duration and Resistance to Wage Reductions: Experimental Evidence," Discussion Paper 1998-073, Tilburg University, Center for Economic Research.
    6. repec:wop:humbsf:1998-74 is not listed on IDEAS
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    Cited by:
    1. Libich, Jan & Stehlík, Petr, 2010. "Incorporating rigidity and commitment in the timing structure of macroeconomic games," Economic Modelling, Elsevier, vol. 27(3), pages 767-781, May.
    2. Jean-Pierre Danthine & André Kurmann, 2005. "The Macroeconomic Consequences of Reciprocity in Labor Relations," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 05.08, Université de Lausanne, Faculté des HEC, DEEP.
    3. Jorge M. Streb, 2006. "Job market signals and signs," CEMA Working Papers: Serie Documentos de Trabajo. 326, Universidad del CEMA.
    4. Jean-Pierre DANTHINE & André KURMANN, 2004. "Efficiency Wages Revisited: The Internal Reference Perspective (new version)," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 04.09, Université de Lausanne, Faculté des HEC, DEEP, revised Jun 2005.

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