PAY SECRECY AND EFFORT PROVISION.

Pay secrecy is often justified on the ground of concerns about the detrimental consequences of intra-firm pay comparisons for work morale and performance. Surprisingly, however, there is only limited empirical evidence that the availability of pay comparison information is detrimental for effort pro...

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Publicado en:Economic Inquiry Vol. 51; no. 3; pp. 1779 - 1795
Autor principal: NOSENZO, DANIELE
Formato: Artículo
Publicado: Wiley-Blackwell Jul2013
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        10.1111/j.1465-7295.2012.00484.x
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        atl: PAY SECRECY AND EFFORT PROVISION.
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        au: NOSENZO, DANIELE
        affil: NosENzo: School of Economics, University of Nottingham, University Park, Nottingham NG7 2RD, UK. Phone +44(0)115 84 67492, Fax +44(0)115 95 14159, Email
      su:
        Wages
        Secrecy
        Pay equity
        Wage differentials
        Comparison (Psychology)
        Compensation management
      sug:
        subj:
          Wages
          Secrecy
          Pay equity
          Wage differentials
          Human Resources Consulting Services
          Comparison (Psychology)
          Compensation management
      ab: Pay secrecy is often justified on the ground of concerns about the detrimental consequences of intra-firm pay comparisons for work morale and performance. Surprisingly, however, there is only limited empirical evidence that the availability of pay comparison information is detrimental for effort provision. In this paper, I study pay comparison effects in a gift-exchange game laboratory experiment where an employer is matched with two symmetric employees. I compare effort choices made by employees in a 'pay secrecy' treatment and in two 'public wages' treatments where employees are informed of the wage paid to the co-worker. In one 'public wages' treatment the employer can choose both wages she pays to the employees, while in the other treatment the wage paid to one employee is regulated exogenously. I show that pay disclosure can be detrimental for effort provision if employees are treated unequally. ( JEL A13, C92, J31)
      pubtype: Academic Journal
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    language: English
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