Information transparency, fairness and labor market efficiency

Ebru Işgın and Barry Sopher

Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), 2015, vol. 58, issue C, 33-39

Abstract: We study the role of information transparency on fairness, welfare and efficiency in long-term employment relationships. When information on the firms’ productivity and surplus is revealed, wage offers represent larger shares of potential gains for workers who, in return, respond with higher performance. Workers respond not only to wages, but also to firms’ intentions concerning fairness. We find that, in long-term relationships, transparency is a strong mechanism to promote performance and welfare. It naturally improves relationships between firms and workers, increases workers’ welfare, profits from low productivity jobs and boosts the labor market efficiency.

Keywords: Information transparency; Efficiency; Fairness; Incomplete contracts (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (3)

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Working Paper: Information Transparency, Fairness and Labor Market Efficiency (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:soceco:v:58:y:2015:i:c:p:33-39

DOI: 10.1016/j.socec.2015.06.005

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