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Monetary and Non-monetary Gift Exchange

Saima Mahmood and Asad Zaman
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Saima Mahmood: Pakistan Institute of Development Economics, Islamabad

Authors registered in the RePEc Author Service: Saima Naeem

The Pakistan Development Review, 2010, vol. 49, issue 4, 719–740

Abstract: We study the role of reciprocity in a labour market field experiment. Recently, many experiments have been conducted to test the extent to which cash and non-monetary gifts affect workers’ productivity through social exchange. Our experiment concluded that non-monetary gifts are more effective at invoking reciprocal behaviour. Despite a higher preference for money, a non-monetary incentive results in a significant increase in productivity as compared to an equivalent cash gift. Extending the experiment for negative reciprocity, the results highlight the asymmetry of positive and negative reciprocity that exists in the field. Discontinuation of a monetary gift results in a stronger negative effect than the discontinuation of non-monetary gifts

Keywords: Gift Exchange; Non-monetary Perks; Social Exchange; Asymmetry of Reciprocity (search for similar items in EconPapers)
JEL-codes: C93 J30 (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (3)

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