Putting reciprocity to work - positive versus negative responses in the field
AbstractWe study the role of reciprocity in a labor market field experiment. In a recent paper, Gneezy and List (2006) investigate the impact of gift exchange in this context and find that it has only a transient effect on long run outcomes. Extending their work to examine both positive and negative reciprocity, we find consonant evidence in the positive reciprocity condition: the gift does not work well in the long run (if at all). Yet, in the negative reciprocity treatment we observe much stronger effects: a wage reduction has a significant and lasting negative impact on efforts. Together, these results highlight the asymmetry of positive and negative reciprocity that exists in the field, and provide an indication of the relative importance of each in the long run.
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Bibliographic InfoPaper provided by The Field Experiments Website in its series Natural Field Experiments with number 00291.
Date of creation: 2006
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Other versions of this item:
- Sebastian Kube & Michel André Maréchal & Clemens Puppe, 2006. "Putting Reciprocity to Work - Positive versus Negative Responses in the Field," University of St. Gallen Department of Economics working paper series 2006 2006-27, Department of Economics, University of St. Gallen.
- C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
- J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
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