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We present a field experiment to assess the effect of own and peer wage variations on actual work effort of employees … additional real-effort laboratory experiment we show that explicit cost and surplus information that enables to exactly calculate … employee's reciprocity requires a clear assessment of the surplus at stake. …
Persistent link: https://www.econbiz.de/10010365848
We present a field experiment to assess the effect of own and peer wage variations on actual work effort of employees … additional real-effort laboratory experiment we show that explicit cost and surplus information that enables to exactly calculate … that employee's reciprocity requires a clear assessment of the surplus at stake. …
Persistent link: https://www.econbiz.de/10010343961
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We analyze optimal labor contracts when the worker is inequity averse towards the employer. Welfare is maximized for an equal sharing rule of surplus between the worker and the firm. That is, profit sharing is optimal even if effort is contractible. If the firm can make a take-it-or leave-it...
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