Relative pay and labor supply

Anat Bracha and Uri Gneezy

No 12-6, Working Papers from Federal Reserve Bank of Boston

Abstract: The authors use a labor supply; relative pay; experimental economics laboratory experiment to examine the impact of relative wages on labor supply. They test the hypothesis that, ceteris paribus, making a given wage high (low) relative to other wage levels will lead to an increase (decrease) in labor supply. They find that labor supply does respond significantly to relative pay, and in the expected direction. However, when a strong enough reason is given for the relative low pay, this difference disappears.

Keywords: Labor supply; Wages (search for similar items in EconPapers)
Date: 2012
New Economics Papers: this item is included in nep-cbe, nep-exp, nep-hrm, nep-lab and nep-lma
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Citations: View citations in EconPapers (2)

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