Unfair Pay and Health
This paper investigates physiological responses to perceptions of unfair pay. We use an integrated approach exploiting complementarities between controlled lab and representative field data. In a simple principal-agent experiment agents produce revenue by working on a tedious task. Principals decide how this revenue is allocated between themselves and their agents. Throughout the experiment we record agents' heart rate variability, which is an indicator of stress-related impaired cardiac autonomic control and has been shown to predict coronary heart diseases in the long-run. Using three measures of perceived unfairness our findings establish a link between unfair payment and heart rate variability. Building on these findings, we further test for potential adverse health effects of unfair pay using data from a large representative data set. The analysis includes cross-sectional and dynamic panel estimations. Complementary to our experimental findings we find a strong and highly significant negative association between health outcomes, in particular cardiovascular health, and the perception of unfair pay.
Year of publication: |
2014
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Authors: | Falk, Armin ; Kosse, Fabian ; Menrath, Ingo ; Verde, Pablo Emilio ; Siegrist, Johannes |
Institutions: | Forschungsbasierte Infrastruktureinrichtung "Sozio-oekonomisches Panel (SOEP)", DIW Berlin (Deutsches Institut für Wirtschaftsforschung) |
Subject: | Fairness | social preferences | inequality | heart rate variability | health | experiments | SOEP |
Saved in:
freely available
Extent: | application/pdf |
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Series: | SOEPpapers on Multidisciplinary Panel Data Research. - ISSN 1864-6689. |
Type of publication: | Book / Working Paper |
Notes: | Number 715 25 pages long |
Classification: | D91 - Intertemporal Consumer Choice; Life Cycle Models and Saving ; D03 - Behavioral Economics; Underlying Principles ; D63 - Equity, Justice, Inequality, and Other Normative Criteria and Measurement ; i14 |
Source: |
Persistent link: https://www.econbiz.de/10011098748