On the Economic Architecture of the Workplace: Repercussions of  Social Comparisons amongst Heterogeneous Workers

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Zitierfähiger Link:	Bitte nutzen Sie diese URL, um auf das Dokument zu verlinken oder es zu zitieren: http://nbn-resolving.de/urn:nbn:de:bsz:21-opus-55974
URL:	http://tobias-lib.uni-tuebingen.de/volltexte/2011/5597/
Originalveröffentlichung:	University of Tübingen Working Papers in Economics and Finance ; 6
Fachgebiet/Einrichtung:	Wirtschaftswissenschaften
Dokumentart:	ResearchPaper
Sprache:	Englisch
Erstellungsjahr:	2011
Publikationsdatum:	26.04.2011
Kurze Inhaltszusammenfassung auf Englisch	We analyze the impact on a firm’s profits and optimal wage rates, and on the distribution of workers’ earnings, when workers compare their earnings with those of co-workers. We consider a low-productivity worker who receives lower wage earnings than a high-productivity worker. When the low-productivity worker derives (dis)utility not only from his own effort but also from comparing his earnings with those of the high-productivity worker, his response to the sensing of relative deprivation is to increase the optimal level of effort. Consequently, the firm’s profits are higher, its wage rates remain unchanged, and the distribution of earnings is compressed.
Kontrollierte Schlagwörter (Deutsch):	Einkommen
Freie Schlagwörter (Englisch):	Social comparisons , Heterogeneous workforce , Relative deprivation , Effort exertion, Earnings gap, Earnings compression
DDC-Sachgruppe:	Wirtschaft
Lizenz:	Veröffentlichungsvertrag ohne Print-on-Demand