Minimum wage restrictions and employee effort in incomplete labor markets: An experimental investigation

Journal of Economic Behavior and Organization

Volumn 73, Issue 3, 2010, Pages 317-326

  Owens, Mark F ^a   Kagel, John H ^b  

^a MIDDLE TENNESSEE STATE UNIVERSITY   (United States)

^b OHIO STATE UNIVERSITY   (United States)

Author keywords

Effort response; Experiment; Gift exchange; Minimum wage

Indexed keywords

EID: 77249096806     PISSN: 01672681     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jebo.2009.12.002     Document Type: Article

References (23)

1. Akerlof G. Labor contracts as partial gift-exchange. Quarterly Journal of Economics 97 (1982) 543-569
2. Al-Ubaydli, O., Andersen, S., Gneezy, U., List, J., 2008. For love or money? Comparing the effects of non-pecuniary and pecuniary incentive schemes in the workplace. Working paper. George Mason University.
3. Bewley T. Why not cut pay?. European Economic Review 42 (1998) 459-490
4. Blount S. When social outcomes aren't fair: the effect of casual attributions on preferences. Organizational Behavior and Human Decision Processes 63 (1995) 131-144
5. Bolton G.E., and Ockenfels A. ERC: a theory of equity, reciprocity and competition. American Economic Review 90 (2000) 166-193
6. Brandts J., and Charness G. Do labour market conditions affect gift exchange? Some experimental evidence. The Economic Journal 114 (2004) 684-708
7. Brown M., Falk A., and Fehr E. Relational contracts and the nature of market interactions. Econometrica 72 (2004) 747-780
8. Campbell C., and Kamlani K. The reasons for wage rigidity: evidence from a survey of firms. Quarterly Journal of Economics 112 (1997) 253-261
9. Card D., and Krueger A. Minimum wages and employment: a case study of the fast-food industry in New Jersey and Pennsylvania. American Economic Review 84 (1994) 772-793
10. Charness G. Attribution and reciprocity in an experimental labor market. Journal of Labor Economics 22 (2004) 665-688
11. Cooper, D., Kagel, J.H., 2009. Other regarding preferences: a selective survey of experimental results. Working paper. Ohio State University.
12. Falk A., Fehr E., and Zehnder C. Fairness perceptions and reservation wages-the behavioral effects of minimum wage laws. Quarterly Journal of Economics 121 (2006) 1347-1381
13. Falk A., and Kosfeld M. The hidden costs of control. American Economic Review 96 (2006) 1611-1630
14. Fehr E., and Falk A. Wage rigidity in a competitive incomplete contract market. Journal of Political Economy 107 (1999) 106-134
15. Fehr E., Kirchler E., Weichbold A., and Gächter S. When social norms overpower competition: gift exchange in experimental labor markets. Journal of Labor Economics 16 (1998) 324-351
16. Fehr E., and Schmidt K.M. A theory of fairness, competition and cooperation. Quarterly Journal of Economics 114 (1999) 817-868
17. Gächter S., and Fehr E. Fairness in labour markets-a survey of experimental results. In: Bolle F., and Lehmann-Waffenschmidt M. (Eds). Surveys in Experimental Economics: Bargaining, Cooperation and Election Markets (2002), Physica-Verlag, Berlin 95-132
18. Hannan R.L. The combined effect of wages and firm profit on employee effort. The Accounting Review 80 (2005) 167-188
19. Hennig-Schmidt H., Rockenbach B., and Sadrieh A. In search of workers real effort reciprocity-a field and laboratory experiment. Journal of the European Economic Association (2008)
20. Katz L.F., and Krueger A. The effect of the minimum wage on the fast food industry. Industrial and Labor Relations Review 46 (1992) 6-21
21. Kube, S., Maréchal, M.A., Puppe, C., 2008. The currency of reciprocity-gift-exchange in the workplace. Working paper. Institute for Empirical Research in Economics.
22. Neumark D., Schweitzer M., and Wascher W. Minimum wage effects throughout the wage distribution. Journal of Human Resources 39 (2004) 425-450
23. Owens, M., Kagel, J.K., 2007. Minimum wage restrictions and employee effort in labor markets with gift exchange present. Working paper. Ohio State University.