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Fairness and the employment contract: North American regions versus Germany
Authors:Gerlach, Knut   Levine, David   Stephan, Gesine   Struck, Olaf
Affiliation:* University of Hannover, University of California at Berkeley, Institute for Employment Research, Nuremberg and University of Jena, respectively
Abstract:Substantial evidence shows that North Americans are generallymore accepting of the market than Europeans and attribute marketoutcomes to a larger degree to effort or skill. Thus, NorthAmericans might be more accepting of layoffs and pay cuts thanGermans, and Germans might be more sensitive to the proceduresand conditions under which pay cuts and layoffs occur. The empiricalresults from our quasi-experiment are largely in line with thesehypotheses. The results may help to explain and be explainedby the different labour market institutions in the differentregions.
Keywords:Fairness    Employment contract    Comparative labour markets
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