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Do Workers Enjoy Procedural Utility?

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  • Matthias Benz
  • Alois Stutzer

Abstract

People are likely to obtain utility not only from actual outcomes, but also from the conditions which lead to these outcomes. This paper empirically tests the notion of procedural utility for the context of work relationships. Using a large survey among British workers, we find substantial procedural effects on the utility workers derive from their pay. Utility from pay is not only strongly influenced by economic outcomes (the pay levels workers get for given inputs), but also by the way pay is determined. The findings are robust to a series of alternative explanations.

Suggested Citation

  • Matthias Benz & Alois Stutzer, "undated". "Do Workers Enjoy Procedural Utility?," IEW - Working Papers 127, Institute for Empirical Research in Economics - University of Zurich.
    • Handle: RePEc:zur:iewwpx:127
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    File URL: https://www.zora.uzh.ch/id/eprint/52026/1/iewwp127.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Carlo Borzaga & Ermanno Tortia, 2004. "Worker involvement in entrepreneurial nonprofit organizations. Toward a new assessment of workers' perceived satisfaction and fairness," Department of Economics Working Papers 0409, Department of Economics, University of Trento, Italia.
    2. Mertins, Vanessa & Egbert, Henrik & Könen, Tanja, 2013. "The effects of individual judgments about selection procedures: Results from a power-to-resist game," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 42(C), pages 112-120.
    3. Tortia, Ermanno C., 2017. "The firm as a common. The case of the accumulation and use of capital resources in co-operative enterprises," MPRA Paper 76735, University Library of Munich, Germany.
    4. Pelligra, Vittorio, 2004. "Motivazioni, Procedure e Filtri: strumenti innovativi di sviluppo organizzativo," AICCON Working Papers 4-2004, Associazione Italiana per la Cultura della Cooperazione e del Non Profit.
    5. Enzo Valentini, 2012. "Giving Voice To Employees And Spreading Information Within The Firm: The Manner Matters," Journal of Knowledge Management, Economics and Information Technology, ScientificPapers.org, vol. 2(4), pages 1-7, August.
    6. Brouwer, Werner B.F. & Culyer, Anthony J. & van Exel, N. Job A. & Rutten, Frans F.H., 2008. "Welfarism vs. extra-welfarism," Journal of Health Economics, Elsevier, vol. 27(2), pages 325-338, March.
    7. Tortia, Ermanno C., 2008. "Worker well-being and perceived fairness: Survey-based findings from Italy," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(5), pages 2080-2094, October.
    8. Ermanno Tortia, 2006. "Worker satisfaction and perceived fairness: result of a survey in public, and non-profit organizations," Department of Economics Working Papers 0604, Department of Economics, University of Trento, Italia.

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    More about this item

    Keywords

    outcome utility; procedural utility; pay procedure; work relationship; pay satisfaction;
    All these keywords.

    JEL classification:

    • D60 - Microeconomics - - Welfare Economics - - - General
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation

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