Wage dispersion and workers` effort

M. Fernanda Rivas

Economics Bulletin, 2009, vol. 29, issue 2, 788-794

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: C9 J3 (search for similar items in EconPapers)
Date: 2009-05-03
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Citations: View citations in EconPapers (9)

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