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 Department of Economics, University of St. Gallen in its series University of St. Gallen Department of Economics working paper series 2006 with number 2006-27.
Length: 20 pages
Date of creation: Nov 2006
Date of revision:
reciprocity; gift exchange; field experiment;
Other versions of this item:
- Sebastian Kube & Michel Marechal & Puppe Clemens, 2006. "Putting reciprocity to work - positive versus negative responses in the field," Natural Field Experiments 00291, The Field Experiments Website.
- C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
- J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-11-18 (All new papers)
- NEP-EXP-2006-11-18 (Experimental Economics)
- NEP-LAB-2006-11-18 (Labour Economics)
- NEP-SOC-2006-11-18 (Social Norms & Social Capital)
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