In this paper we analyze the behavioral consequences of transparent wage distributions on workers' motivation. We study a simple gift-exchange game with one principal and three agents in two different treatments. In the first treatment, agents are not informed about their co-workers' wages and...

This paper documents the magnitude, pattern, and evolution of lifetime earnings inequality in Germany. Based on a large sample of earning biographies from social security records, we show that the intra-generational distribution of lifetime earnings of male workers has a Gini coefficient around...