Abstract
We examine the impact of relative wages on labor supply in a laboratory experiment. We test the hypothesis that, ceteris paribus, making a given wage high (low) relative to other wage levels will lead to an increase (decrease) in labor supply. We find that labor supply does respond significantly to relative pay, and in the expected direction. However, when a strong enough reason for the relative low pay is given, this difference disappears.
| Original language | English |
|---|---|
| Pages (from-to) | 297-315 |
| Number of pages | 19 |
| Journal | Journal of Labor Economics |
| Volume | 33 |
| Issue number | 2 |
| DOIs | |
| State | Published - 1 Apr 2015 |
| Externally published | Yes |
Bibliographical note
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