Work meaning and fair wages

Thimo De Schouwer, Elisabeth Gsottbauer, Iris Kesternich and Heiner Schumacher

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: Work meaning can be an important driver of labor supply. Since, by definition, work meaning is associated with benefits for others, it also has an important fairness dimension. In a theoretical model, we show that workers’ willingness to pay for work meaning can be positive or negative, depending on the relative strength of fairness concerns and meaning preferences. To examine the importance of these behavioral motives for labor supply, we conduct a survey experiment with representative samples from The Netherlands and Germany in which we vary within-subject the benefits that a job creates for others. We find that only a minority of workers are actually willing to sacrifice wage for work meaning. The average willingness to pay for work meaning is positive, but substantially lower than the willingness to pay for job flexibility. There is a strong negative relationship between fairness concerns and willingness to pay for work meaning. Thus, individuals who prioritize fairness are less likely to accept lower wages for meaningful work.

Keywords: work meaning; labor supply; fairness preferences (search for similar items in EconPapers)
JEL-codes: C90 M52 (search for similar items in EconPapers)
Pages: 14 pages
Date: 2025-12-31
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Published in Labour Economics, 31, December, 2025, 97. ISSN: 0927-5371

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