EconPapers    
Economics at your fingertips  
 

Effort and Comparison Income: Experimental and Survey Evidence

Andrew Clark (), David Masclet () and Marie Claire Villeval ()

No 2169, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper considers the effect of status or relative income on work effort combining experimental evidence from a gift-exchange game with ISSP survey data. We find a consistent negative effect of others’ incomes on individual effort in both datasets. The individual’s rank in the income distribution is a stronger determinant of effort than others’ average income, suggesting that comparisons are more ordinal than cardinal. We then show that effort is also affected by comparisons over time: those who received higher income offers or had higher income rank in the past exert lower levels of effort for a given current income and rank.

Keywords: comparison income; peak-end; experiments; rank; effort (search for similar items in EconPapers)
JEL-codes: M54 J33 A13 C92 D63 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec, nep-cbe and nep-exp
Date: 2006-06
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9) Track citations by RSS feed

Downloads: (external link)
http://ftp.iza.org/dp2169.pdf (application/pdf)

Related works:
Journal Article: Effort and Comparison Income: Experimental and Survey Evidence (2010) Downloads
Working Paper: Effort and comparison income: experimental and survey evidence (2010) Downloads
Working Paper: Effort and Comparison Income: Experimental and Survey Evidence (2008) Downloads
Working Paper: Effort and comparison income: experimental and survey evidence (2008) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp2169

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().

 
Page updated 2019-06-13
Handle: RePEc:iza:izadps:dp2169