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Industrial fatigue Redux

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  • Nocetti, Diego

Abstract

This paper presents a gift-exchange labor market model in which workers are prone to exhaustion. Although norms of reciprocity and fairness indicate that firms and workers must exchange 'gifts' in the form of higher wages and higher effort respectively, these incentives are mitigated by the evolution of fatigue and, therefore, the dynamic efficiency wage is lower than its static counterpart.

Suggested Citation

  • Nocetti, Diego, 2008. "Industrial fatigue Redux," Economics Letters, Elsevier, vol. 99(2), pages 286-289, May.
    • Handle: RePEc:eee:ecolet:v:99:y:2008:i:2:p:286-289
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    References listed on IDEAS

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    1. Ernst Fehr & Georg Kirchsteiger & Arno Riedl, 1993. "Does Fairness Prevent Market Clearing? An Experimental Investigation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 108(2), pages 437-459.
    2. Uri Gneezy & John A List, 2006. "Putting Behavioral Economics to Work: Testing for Gift Exchange in Labor Markets Using Field Experiments," Econometrica, Econometric Society, vol. 74(5), pages 1365-1384, September.
    3. repec:bla:econom:v:58:y:1991:i:232:p:501-14 is not listed on IDEAS
    4. Akerlof, George A, 1984. "Gift Exchange and Efficiency-Wage Theory: Four Views," American Economic Review, American Economic Association, vol. 74(2), pages 79-83, May.
    5. Biddle, Jeff E & Hamermesh, Daniel S, 1990. "Sleep and the Allocation of Time," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 922-943, October.
    6. George A. Akerlof, 1982. "Labor Contracts as Partial Gift Exchange," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 97(4), pages 543-569.
    7. Fehr, Ernst & Kirchler, Erich & Weichbold, Andreas & Gächter, Simon, 1998. "When Social Norms Overpower Competition: Gift Exchange in Experimental Labor Markets," Journal of Labor Economics, University of Chicago Press, vol. 16(2), pages 324-351, April.
    8. Steven D. Levitt & John A. List, 2007. "What Do Laboratory Experiments Measuring Social Preferences Reveal About the Real World?," Journal of Economic Perspectives, American Economic Association, vol. 21(2), pages 153-174, Spring.
    9. Solow, Robert M., 1979. "Another possible source of wage stickiness," Journal of Macroeconomics, Elsevier, vol. 1(1), pages 79-82.
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    Cited by:

    1. Jorge González Chapela, 2018. "Physical Work Intensity and the Split Workday: Theory and Evidence from Spain," Journal of Labor Research, Springer, vol. 39(3), pages 329-353, September.
    2. Dragone, Davide, 2009. "I am getting tired: Effort and fatigue in intertemporal decision-making," Journal of Economic Psychology, Elsevier, vol. 30(4), pages 552-562, August.

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