Wage dispersion and workers’ effort

M. Fernanda Rivas () and Matthias Sutter ()

Working Papers from Faculty of Economics and Statistics, University of Innsbruck

Abstract: We study experimentally the relationship between intra-firm wage dispersion chosen by principals and workers' performance. Principals show a preference for more egalitarian wage schemes, and workers are negatively influenced by high levels of wage inequality.

Keywords: wage dispersion; effort; experiment; gift-exchange (search for similar items in EconPapers)
JEL-codes: C92 J33 M52 (search for similar items in EconPapers)
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Persistent link: http://EconPapers.repec.org/RePEc:inn:wpaper:2008-15

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