When workers do not know – The behavioral effects of minimum wage laws revisited
Author
Abstract
Suggested Citation
DOI: 10.1016/j.joep.2012.05.004
Download full text from publisher
As the access to this document is restricted, you may want to search for a different version of it.
References listed on IDEAS
- Ernst Fehr & Simon Gächter, 2000.
"Fairness and Retaliation: The Economics of Reciprocity,"
Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 159-181, Summer.
- Ernst Fehr & Simon Gaechter, "undated". "Fairness and Retaliation: The Economics of Reciprocitys," IEW - Working Papers 040, Institute for Empirical Research in Economics - University of Zurich.
- Ernst Fehr & Simon Gaechter, 2000. "Fairness and Retaliation: The Economics of Reciprocity," CESifo Working Paper Series 336, CESifo.
- Haisley, Emily C. & Weber, Roberto A., 2010. "Self-serving interpretations of ambiguity in other-regarding behavior," Games and Economic Behavior, Elsevier, vol. 68(2), pages 614-625, March.
- Card, David & Krueger, Alan B, 1994.
"Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania,"
American Economic Review, American Economic Association, vol. 84(4), pages 772-793, September.
- David Card & Alan B. Krueger, 1993. "Minimum Wages and Employment: A Case Study of the Fast Food Industry in New Jersey and Pennsylvania," Working Papers 694, Princeton University, Department of Economics, Industrial Relations Section..
- David Card & Alan B. Krueger, 1993. "Minimum Wages and Employment: A Case Study of the Fast Food Industry in New Jersey and Pennsylvania," NBER Working Papers 4509, National Bureau of Economic Research, Inc.
- Armin Falk & James J. Heckman, 2009.
"Lab Experiments are a Major Source of Knowledge in the Social Sciences,"
Working Papers
200935, Geary Institute, University College Dublin.
- Falk, Armin & Heckman, James J., 2009. "Lab Experiments Are a Major Source of Knowledge in the Social Sciences," IZA Discussion Papers 4540, Institute of Labor Economics (IZA).
- Heckman, James J & Falk, Armin, 2010. "Lab Experiments are a Major Source of Knowledge in the Social Sciences," CEPR Discussion Papers 7620, C.E.P.R. Discussion Papers.
- Armin Falk & James J. Heckman, 2009. "Lab Experiments are a Major Source of Knowledge in the Social Sciences," CESifo Working Paper Series 2894, CESifo.
- Scott Adams & David Neumark, 2005.
"Living Wage Effects: New and Improved Evidence,"
Economic Development Quarterly, , vol. 19(1), pages 80-102, February.
- Scott Adams & David Neumark, 2003. "Living Wage Effects: New and Improved Evidence," NBER Working Papers 9702, National Bureau of Economic Research, Inc.
- Christopher J. Flinn, 2006. "Minimum Wage Effects on Labor Market Outcomes under Search, Matching, and Endogenous Contact Rates," Econometrica, Econometric Society, vol. 74(4), pages 1013-1062, July.
- Jordi Brandts & Gary Charness, 2004. "Do Labour Market Conditions Affect Gift Exchange? Some Experimental Evidence," Economic Journal, Royal Economic Society, vol. 114(497), pages 684-708, July.
- Charness, Gary & Kuhn, Peter, 2011.
"Lab Labor: What Can Labor Economists Learn from the Lab?,"
Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 3, pages 229-330,
Elsevier.
- Charness, Gary & Kuhn, Peter J., 2010. "Lab Labor: What Can Labor Economists Learn from the Lab?," IZA Discussion Papers 4941, Institute of Labor Economics (IZA).
- Gary Charness & Peter J. Kuhn, 2010. "Lab Labor: What Can Labor Economists Learn from the Lab?," NBER Working Papers 15913, National Bureau of Economic Research, Inc.
- Babcock, Linda, et al, 1995. "Biased Judgments of Fairness in Bargaining," American Economic Review, American Economic Association, vol. 85(5), pages 1337-1343, December.
- Owens, Mark F. & Kagel, John H., 2010. "Minimum wage restrictions and employee effort in incomplete labor markets: An experimental investigation," Journal of Economic Behavior & Organization, Elsevier, vol. 73(3), pages 317-326, March.
- Strobl, Eric & Walsh, Frank, 2003.
"Minimum Wages and Compliance: The Case of Trinidad and Tobago,"
Economic Development and Cultural Change, University of Chicago Press, vol. 51(2), pages 427-450, January.
- Eric Strobl & Frank Walsh, 2003. "Minimum Wages and compliance : the case of Trinidad and Tobago," Open Access publications 10197/184, School of Economics, University College Dublin.
- Armin Falk & Ernst Fehr & Christian Zehnder, "undated".
"The Behavioral Effects of Minimum Wages,"
IEW - Working Papers
247, Institute for Empirical Research in Economics - University of Zurich.
- Fehr, Ernst & Falk, Armin & Zehnder, Christian, 2005. "The Behavioural Effects of Minimum Wages," CEPR Discussion Papers 5115, C.E.P.R. Discussion Papers.
- Falk, Armin & Fehr, Ernst & Zehnder, Christian, 2005. "The Behavioral Effects of Minimum Wages," IZA Discussion Papers 1625, Institute of Labor Economics (IZA).
- Dan Ariely & George Loewenstein & Drazen Prelec, 2003. ""Coherent Arbitrariness": Stable Demand Curves Without Stable Preferences," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(1), pages 73-106.
- Ashenfelter, Orley & Smith, Robert S, 1979.
"Compliance with the Minimum Wage Law,"
Journal of Political Economy, University of Chicago Press, vol. 87(2), pages 333-350, April.
- Orley Ashenfelter & Robert Smith, 1977. "Compliance with the Minimum Wage Law," Working Papers 478, Princeton University, Department of Economics, Industrial Relations Section..
- Linda Babcock & Xianghong Wang & George Loewenstein, 1996. "Choosing the Wrong Pond: Social Comparisons in Negotiations That Reflect a Self-Serving Bias," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 111(1), pages 1-19.
- Babcock, Linda & Loewenstein, George & Wang, Xianghong, 1995. "The relationship between uncertainty, the contract zone, and efficiency in a bargaining experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 27(3), pages 475-485, August.
- Yang Du & Weiguang Pan, 2009. "Minimum Wage Regulation in China and Its Applications to Migrant Workers in the Urban Labor Market," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 17(2), pages 79-93, March.
- Falk, Armin & Fehr, Ernst, 2003. "Why labour market experiments?," Labour Economics, Elsevier, vol. 10(4), pages 399-406, August.
- Armin Falk & Ernst Fehr & Christian Zehnder, 2006. "Fairness Perceptions and Reservation Wages—the Behavioral Effects of Minimum Wage Laws," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 121(4), pages 1347-1381.
- Jing Wang & Morley Gunderson, 2011. "Minimum Wage Impacts In China: Estimates From A Prespecified Research Design, 2000–2007," Contemporary Economic Policy, Western Economic Association International, vol. 29(3), pages 392-406, July.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
Cited by:
- Wenkai Sun & Xianghong Wang & Xiaoxi Zhang, 2015. "Minimum wage effects on employment and working time of Chinese workers——evidence based on CHNS," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-22, December.
- Fontagné, Lionel & Limardi, Michela, 2024.
"The Generalized System of Preferences and NGO activism,"
Journal of Development Economics, Elsevier, vol. 166(C).
- Lionel Fontagné & Michela Limardi, 2021. "The Generalized System of Preferences and NGO Activism," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-03223795, HAL.
- Lionel Fontagné & Michela Limardi, 2024. "The Generalized System of Preferences and NGO activism," Post-Print halshs-04408964, HAL.
- Lionel Fontagné & Michela Limardi, 2024. "The Generalized System of Preferences and NGO activism," PSE-Ecole d'économie de Paris (Postprint) halshs-04408964, HAL.
- Lionel Fontagné & Michela Limardi, 2021. "The Generalized System of Preferences and NGO Activism," Post-Print halshs-03223795, HAL.
- Lionel Fontagné & Michela Limardi, 2021. "The Generalized System of Preferences and NGO Activism," Documents de travail du Centre d'Economie de la Sorbonne 21014, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
- Lionel Fontagné & Michela Limardi, 2021. "The Generalized System of Preferences and NGO Activism," Documents de travail du Centre d'Economie de la Sorbonne 21014r, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne, revised Jun 2021.
- Lionel Fontagné & Michela Limardi, 2024. "The Generalized System of Preferences and NGO activism," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-04408964, HAL.
- Alunica Morariu, 2019. "Migration and Asylum Policy Within EU. Causes, Needs, Strategic Policy and Evolutions," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(2), pages 148-157, December.
- Haroon Bhorat & Tara Caetano & Benjamin Jourdan & Ravi Kanbur & Christopher Rooney & Benjamin Stanwix & Ingrid Woolard, 2016. "Investigating the Feasibility of a National Minimum Wage for South Africa," Working Papers 201601, University of Cape Town, Development Policy Research Unit.
- Kocher, Martin G. & Martinsson, Peter & Persson, Emil & Wang, Xianghong, 2016.
"Is there a hidden cost of imposing a minimum contribution level for public good contributions?,"
Journal of Economic Psychology, Elsevier, vol. 56(C), pages 74-84.
- Kocher, Martin G. & Martinsson, Peter & Persson, Emil & Wang, Xianghong, 2016. "Is there a hidden cost of imposing a minimum contribution level for public good contributions?," Working Papers in Economics 654, University of Gothenburg, Department of Economics.
- Kocher, Martin G. & Martinsson, Peter & Persson, Emil & Wang, Xianghong, 2016. "Is there a hidden cost of imposing a minimum contribution level for public good contributions?," Munich Reprints in Economics 43484, University of Munich, Department of Economics.
- Zahra Murad & Robert Dowell, 2020. "Foreign visa salary requirement and natives’ reservation wages," Working Papers in Economics & Finance 2020-06, University of Portsmouth, Portsmouth Business School, Economics and Finance Subject Group.
Most related items
These are the items that most often cite the same works as this one and are cited by the same works as this one.- Armin Falk & Fabian Kosse & Ingo Menrath & Pablo Emilio Verde & Johannes Siegrist, 2014.
"Unfair Pay and Health,"
SOEPpapers on Multidisciplinary Panel Data Research
715, DIW Berlin, The German Socio-Economic Panel (SOEP).
- Falk, Armin & Kosse, Fabian & Menrath, Ingo & Verde, Pablo E. & Siegrist, Johannes, 2018. "Unfair Pay and Health," Munich Reprints in Economics 68611, University of Munich, Department of Economics.
- Armin Falk & Fabian Kosse & Ingo Menrath & Pablo Emilio Verde & Johannes Siegrist, 2016. "Unfair Pay and Health," Working Papers 2016-015, Human Capital and Economic Opportunity Working Group.
- Armin Falk & Fabian Kosse & Ingo Menrath & Pablo E. Verde & Johannes Siegrist, 2016. "Unfair Pay and Health," SOEPpapers on Multidisciplinary Panel Data Research 870, DIW Berlin, The German Socio-Economic Panel (SOEP).
- Dohmen, Thomas, 2014.
"Behavioral labor economics: Advances and future directions,"
Labour Economics, Elsevier, vol. 30(C), pages 71-85.
- Dohmen, Thomas, 2014. "Behavioural Labour Economics: Advances and Future Directions," IZA Discussion Papers 8263, Institute of Labor Economics (IZA).
- Haroon Bhorat & Ravi Kanbur & Benjamin Stanwix, 2017.
"Minimum Wages in Sub-Saharan Africa: A Primer,"
The World Bank Research Observer, World Bank, vol. 32(1), pages 21-74.
- Bhorat, Haroon & Kanbur, Ravi & Stanwix, Benjamin, 2015. "Minimum Wages In Sub-Saharan Africa: A Primer," Working Papers 250019, Cornell University, Department of Applied Economics and Management.
- Bhorat, Haroon & Kanbur, Ravi & Stanwix, Benjamin, 2015. "Minimum Wages in Sub-Saharan Africa: A Primer," IZA Discussion Papers 9204, Institute of Labor Economics (IZA).
- Haroon Bhorat & Ravi Kanbur & Benjamin Stanwix, 2015. "Minimum Wages in Sub-Saharan Africa: A Primer," Working Papers 201503, University of Cape Town, Development Policy Research Unit.
- Kanbur, Ravi & Stanwix, Benjamin, 2015. "Minimum Wages in Sub-Saharan Africa: A Primer," CEPR Discussion Papers 10760, C.E.P.R. Discussion Papers.
- Daniele Nosenzo, 2010. "The Impact of Pay Comparisons on Effort Behavior," Discussion Papers 2010-03, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
- Brink, William & Kuang, Xi (Jason) & Majerczyk, Michael, 2021. "The effects of minimum-wage increases on wage offers, wage premiums and employee effort under incomplete contracts," Accounting, Organizations and Society, Elsevier, vol. 89(C).
- Rebitzer, James B. & Taylor, Lowell J., 2011.
"Extrinsic Rewards and Intrinsic Motives: Standard and Behavioral Approaches to Agency and Labor Markets,"
Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 8, pages 701-772,
Elsevier.
- Rebitzer, James B. & Taylor, Lowell J., 2010. "Extrinsic Rewards and Intrinsic Motives: Standard and Behavioral Approaches to Agency and Labor Markets," IZA Discussion Papers 5058, Institute of Labor Economics (IZA).
- James B. Rebitzer & Lowell J. Taylor, 2010. "Extrinsic Rewards and Intrinsic Motives: Standard and Behavioral Approaches To Agency and Labor Markets," Economics Working Paper Archive wp_607, Levy Economics Institute.
- Koch, Andreas & Kirchmann, Andrea & Reiner, Marcel & Scheu, Tobias & Zühlke, Anne & Bonin, Holger, 2020. "Verhaltensmuster von Betrieben und Beschäftigten im Kontext des gesetzlichen Mindestlohns," IZA Research Reports 97, Institute of Labor Economics (IZA).
- Wang, Jian & Iversen, Tor & Hennig-Schmidt, Heike & Godager, Geir, 2017. "How Changes in Payment Schemes Influence Provision Behavior," HERO Online Working Paper Series 2017:2, University of Oslo, Health Economics Research Programme.
- Armin Falk & Fabian Kosse & Ingo Menrath & Pablo E. Verde & Johannes Siegrist, 2018.
"Unfair Pay and Health,"
Management Science, INFORMS, vol. 64(4), pages 1477-1488, April.
- Armin Falk & Fabian Kosse & Ingo Menrath & Pablo Emilio Verde & Johannes Siegrist, 2014. "Unfair Pay and Health," SOEPpapers on Multidisciplinary Panel Data Research 715, DIW Berlin, The German Socio-Economic Panel (SOEP).
- Armin Falk & Fabian Kosse & Ingo Menrath & Pablo Emilio Verde & Johannes Siegrist, 2016. "Unfair Pay and Health," Working Papers 2016-015, Human Capital and Economic Opportunity Working Group.
- Falk, Armin & Kosse, Fabian & Menrath, Ingo & Verde, Pablo E. & Siegrist, Johannes, 2018. "Unfair Pay and Health," Munich Reprints in Economics 68611, University of Munich, Department of Economics.
- Armin Falk & Fabian Kosse & Ingo Menrath & Pablo E. Verde & Johannes Siegrist, 2016. "Unfair Pay and Health," SOEPpapers on Multidisciplinary Panel Data Research 870, DIW Berlin, The German Socio-Economic Panel (SOEP).
- Daniele Nosenzo, 2012. "Pay Secrecy and effort provision," Discussion Papers 2012-13, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
- Mayneris, Florian & Poncet, Sandra & Zhang, Tao, 2018.
"Improving or disappearing: Firm-level adjustments to minimum wages in China,"
Journal of Development Economics, Elsevier, vol. 135(C), pages 20-42.
- Florian Mayneris & Sandra Poncet & Tao Zhang, 2016. "Improving or Disappearing: Firm-Level Adjustments to Minimum Wages in China," LIDAM Discussion Papers IRES 2016027, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- Florian Mayneris & Sandra Poncet & Tao Zhang, 2018. "Improving or disappearing: Firm-level adjustments to minimum wages in China," PSE-Ecole d'économie de Paris (Postprint) halshs-01885465, HAL.
- Florian Mayneris & Sandra Poncet & Tao Zhang, 2018. "Improving or disappearing: Firm-level adjustments to minimum wages in China," Post-Print halshs-01885465, HAL.
- Jellal, Mohamed, 2012. "Maroc salaire minimum emploi et pauvreté [Morocco minimum wage employment and poverty]," MPRA Paper 38491, University Library of Munich, Germany.
- Bauernschuster, Stefan & Duersch, Peter & Oechssler, Jörg & Vadovic, Radovan, 2010.
"Mandatory sick pay provision: A labor market experiment,"
Journal of Public Economics, Elsevier, vol. 94(11-12), pages 870-877, December.
- Stefan Bauernschuster & Jörg Oechssler & Peter Duersch & Radovan Vadovic, 2009. "Mandatory Sick Pay Provision: A Labor Market Experiment," Jena Economics Research Papers 2009-076, Friedrich-Schiller-University Jena.
- Bauernschuster, Stefan & Duersch, Peter & Oechssler, Jörg & Vadovic, Radovan, 2010. "Mandatory Sick Pay Provision: A Labor Market Experiment," Working Papers 0498, University of Heidelberg, Department of Economics.
- Danz, David & Engelmann, Dirk & Kübler, Dorothea, 2022.
"Do legal standards affect ethical concerns of consumers?,"
European Economic Review, Elsevier, vol. 144(C).
- Engelmann, Dirk & Kübler, Dorothea, 2007. "Do Legal Standards Affect Ethical Concerns of Consumers?," IZA Discussion Papers 3266, Institute of Labor Economics (IZA).
- Engelmann, Dirk & Kübler, Dorothea, 2008. "Do legal standards affect ethical concerns of consumers?," SFB 649 Discussion Papers 2008-008, Humboldt University Berlin, Collaborative Research Center 649: Economic Risk.
- Danz, David & Engelmann, Dirk & Kübler, Dorothea, 2020. "Do Legal Standards Affect Ethical Concerns of Consumers?," Rationality and Competition Discussion Paper Series 234, CRC TRR 190 Rationality and Competition.
- Kocher, Martin G. & Luhan, Wolfgang J. & Sutter, Matthias, 2012.
"Testing a forgotten aspect of Akerlof’s gift exchange hypothesis: Relational contracts with individual and uniform wages,"
Discussion Papers in Economics
12816, University of Munich, Department of Economics.
- Kocher, Martin G. & Luhan, Wolfgang J. & Sutter, Matthias, 2012. "Testing a Forgotten Aspect of Akerlof's Gift Exchange Hypothesis: Relational Contracts with Individual and Uniform Wages," IZA Discussion Papers 6415, Institute of Labor Economics (IZA).
- Martin G. Kocher & Wolfgang J. Luhan & Matthias Sutter, 2012. "Testing a forgotten aspect of Akerlof's gift exchange hypothesis: Relational contracts with individual and uniform wages," Working Papers 2012-02, Faculty of Economics and Statistics, Universität Innsbruck.
- Bejarano, Hernán & Corgnet, Brice & Gómez-Miñambres, Joaquín, 2021. "Economic stability promotes gift-exchange in the workplace," Journal of Economic Behavior & Organization, Elsevier, vol. 187(C), pages 374-398.
- Sandra Poncet & Florian Mayneris & Tao Zhang, 2014.
"The cleansing effect of minimum wage : Minimum wage rules, firm dynamics and aggregate productivity in China,"
Working Papers
2014-16, CEPII research center.
- Sandra PONCET & Florian MAYNERIS & Tao ZHANG, 2014. "The cleansing effect of minimum wages - Minimum wages, firm dynamics and aggregate productivity in China," Working Papers P113, FERDI.
- MAYNERIS, Florian & PONCET, Sandra & ZHANG, Tao, 2014. "The cleansing effect of minimum wages. Minimum wages, firm dynamics and aggregate productivity in China," LIDAM Discussion Papers CORE 2014044, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Sandra PONCET & Florian MAYNERIS & Tao ZHANG, 2014. "The cleansing effect of minimum wages - Minimum wages, firm dynamics and aggregate productivity in China," Working Papers P113, FERDI.
- Florian MAYNERIS & Sandra PONCET & Tao ZHANG, 2014. "The cleansing effect of minimum wages Minimum wages, firm dynamics and aggregate productivity in China," LIDAM Discussion Papers IRES 2014015, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- Armin Falk & Ernst Fehr & Christian Zehnder, "undated".
"The Behavioral Effects of Minimum Wages,"
IEW - Working Papers
247, Institute for Empirical Research in Economics - University of Zurich.
- Fehr, Ernst & Falk, Armin & Zehnder, Christian, 2005. "The Behavioural Effects of Minimum Wages," CEPR Discussion Papers 5115, C.E.P.R. Discussion Papers.
- Falk, Armin & Fehr, Ernst & Zehnder, Christian, 2005. "The Behavioral Effects of Minimum Wages," IZA Discussion Papers 1625, Institute of Labor Economics (IZA).
- Zahra Murad & Robert Dowell, 2020. "Foreign visa salary requirement and natives’ reservation wages," Working Papers in Economics & Finance 2020-06, University of Portsmouth, Portsmouth Business School, Economics and Finance Subject Group.
- Dariel, A. & Riedl, A.M., 2013. "Reciprocal preferences and the unraveling of gift-exchange," Research Memorandum 034, Maastricht University, Graduate School of Business and Economics (GSBE).
More about this item
Keywords
Minimum wage; Fairness; Employment; Asymmetric information;All these keywords.
JEL classification:
- J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
- J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
- D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
Statistics
Access and download statisticsCorrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:joepsy:v:33:y:2012:i:5:p:951-962. See general information about how to correct material in RePEc.
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/joep .
Please note that corrections may take a couple of weeks to filter through the various RePEc services.