Relative pay and labor supply

Anat Bracha; Uri Gneezy; George Loewenstein

doi:10.1086/678494

Relative pay and labor supply

Anat Bracha, Uri Gneezy, George Loewenstein

Research output: Contribution to journal › Article › peer-review

Abstract

We examine the impact of relative wages on labor supply in a laboratory experiment. We test the hypothesis that, ceteris paribus, making a given wage high (low) relative to other wage levels will lead to an increase (decrease) in labor supply. We find that labor supply does respond significantly to relative pay, and in the expected direction. However, when a strong enough reason for the relative low pay is given, this difference disappears.

Original language	English
Pages (from-to)	297-315
Number of pages	19
Journal	Journal of Labor Economics
Volume	33
Issue number	2
DOIs	https://doi.org/10.1086/678494
State	Published - 1 Apr 2015
Externally published	Yes

All Science Journal Classification (ASJC) codes

Industrial relations
Economics and Econometrics

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10.1086/678494

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Relative pay and labor supply

Abstract

All Science Journal Classification (ASJC) codes

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