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On common evaluation standards and the acceptance of wage inequality

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  • Werner, Peter

Abstract

This study investigates how the exogenous provision of norm information concerning wage inequality influences the acceptance of wage differences. In an experiment where one employer interacts with two employees who differ in productivities, two main treatments provide information suggesting either an injunctive norm for small or for large wage differences prior to the interaction.

Suggested Citation

  • Werner, Peter, 2024. "On common evaluation standards and the acceptance of wage inequality," Games and Economic Behavior, Elsevier, vol. 145(C), pages 137-156.
    • Handle: RePEc:eee:gamebe:v:145:y:2024:i:c:p:137-156
    DOI: 10.1016/j.geb.2024.03.004
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    More about this item

    Keywords

    Wage transparency; Wage inequality; Norms; Work performance; Experiment;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects

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