Wage inequality and team production: An experimental analysis |
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Authors: | Björn Bartling Ferdinand A von Siemens |
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Institution: | a University of Zurich, Institute for Empirical Research in Economics, Zurich, Switzerland b University of Amsterdam, Amsterdam School of Economics, The Netherlands |
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Abstract: | Numerous survey studies report that human resource managers curb wage inequality with the intent to avoid detrimental effects on workers’ morale. However, there exists little controlled empirical evidence demonstrating that horizontal social comparisons and wage inequality have adverse effects on worker behavior. In this paper, we present data from a laboratory experiment that studies the impact of wage inequality on participation and effort choices in team production. Overall, we do not find evidence that wage inequality has a significant impact on either participation or effort choices. |
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Keywords: | D20 D86 J54 |
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