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Social preferences, accountability, and wage bargaining

Author

Listed:
  • Martin G. Kocher

    (University of Munich
    Institute of Advanced Studies
    University of Gothenburg)

  • Odile Poulsen

    (University of East Anglia)

  • Daniel J. Zizzo

    (Newcastle University)

Abstract

We experimentally test preferences for employment in a collective wage bargaining situation with heterogeneous workers. We vary the size of the union and introduce a treatment mechanism transforming the voting game into an individual allocation task. Our results show that highly productive workers do not take employment of low productive workers into account when making wage proposals, regardless of whether only union members determine the wage or all workers. The level of pro-social preferences is small in the voting game, but it increases if the game becomes an individual allocation task. We interpret this as an accountability effect.

Suggested Citation

  • Martin G. Kocher & Odile Poulsen & Daniel J. Zizzo, 2017. "Social preferences, accountability, and wage bargaining," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 48(3), pages 659-678, March.
    • Handle: RePEc:spr:sochwe:v:48:y:2017:i:3:d:10.1007_s00355-017-1028-x
    DOI: 10.1007/s00355-017-1028-x
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    Cited by:

    1. Vittorio Pelligra & Tommaso Reggiani & Daniel John Zizzo, 2020. "Responding to (un)reasonable requests by an authority," Theory and Decision, Springer, vol. 89(3), pages 287-311, October.
    2. Nguyen Thi Thu Ha, 2021. "Workplace Isolation In The Growth Trend Of Remote Working: A Literature Review," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 27, pages 97-113, June.
    3. Köhler, Katrin & Pagel, Beatrice & Rau, Holger A., 2015. "How worker participation affects reciprocity under minimum remuneration policies: Experimental evidence," University of Göttingen Working Papers in Economics 267, University of Goettingen, Department of Economics.
    4. Rick C. Warne, 2021. "Using Utility Theory To Frame Challenges And Solutions To Employee Meaningfulness," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 27, pages 77-93, June.
    5. Franziska Heinicke & Wladislaw Mill & Henrik Orzen, 2024. "Bargaining Under the Threat of a Nuclear Option," CRC TR 224 Discussion Paper Series crctr224_2024_559, University of Bonn and University of Mannheim, Germany.

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    More about this item

    Keywords

    Union Member; Median Voter; Union Membership; Wage Level; Employment Level;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • J52 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Dispute Resolution: Strikes, Arbitration, and Mediation

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