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On the role of social wage comparisons in gift-exchange experiments

Authors:	Ch’ng Kean SiangTill Requate Israel Waichman

Institution:	^a Department of Economics, Universiti Sains Malaysia, Pulau Pinang, Malaysia ^b Department of Economics, University of Kiel, and Institute of World Economics, Kiel, Germany ^c Department of Economics, University of Kiel, Olshausenstrasse 40, 24118, Kiel, Germany

Abstract:	This study extends a bilateral gift-exchange experiment by Clark et al. (2010). We investigate how the provision of either quantitative or qualitative information on the average wage paid in all worker-employer relationships impacts the wage set by employers and worker performance. We find that information on the average wage reduces (increases) both wage offers and effort levels in one-shot (repeated) relationships.

Keywords:	C91 D03 D63 J41
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