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It's not you, it's me: an experimental study of employers' wage setting behavior


  • Micaela M. Kulesz

    () (Institutional and Behavioral Economics Deparment, Leibniz-ZMT)

  • Dennis A. V. Dittrich

    () (School of Humanities and Social Sciences, Jacobs University Bremen)


Using an intergenerational trilateral laboratory gift-exchange game, we investigate how employers' own performance in a real effort task impacts on the wage setting behavior of younger and older employers. We find that the employers' own past performance strongly affects wage setting behavior, though we do not find significant differences concerning the employers' or employees' age.

Suggested Citation

  • Micaela M. Kulesz & Dennis A. V. Dittrich, 2014. "It's not you, it's me: an experimental study of employers' wage setting behavior," Economics Bulletin, AccessEcon, vol. 34(4), pages 2128-2137.
  • Handle: RePEc:ebl:ecbull:eb-14-00868

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    More about this item


    responsibility alleviation; warm-glow; laboratory experiment;

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • C9 - Mathematical and Quantitative Methods - - Design of Experiments


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