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This paper considers the effect of status or relative income on work effort, combining experimental evidence from a gift-exchange game with the analysis of multi-country ISSP survey data. We find a consistent negative effect of others' incomes on individual effort in both datasets. The individual's rank in the income distribution is a stronger determinant of effort than is others' average income, suggesting that comparisons are more ordinal than cardinal. In the experiment, effort is also affected by comparisons over time: those who received higher income offers or enjoyed higher income rank in the past exert lower levels of effort for a given current income and rank.
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Effort and comparison income: experimental and survey evidence
2008, Centre for Economic Performance, London School of Economics and Political Science
Electronic resource
in English
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Book Details
Edition Notes
Title from PDF file (viewed on Oct. 10, 2008).
"August 2008."
Includes bibliographical references.
Also available in print.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.
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- Created December 4, 2008
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December 22, 2020 | Edited by MARC Bot | import existing book |
July 29, 2012 | Edited by VacuumBot | Updated format '[electronic resource] :' to 'Electronic resource' |
December 15, 2009 | Edited by WorkBot | link works |
December 4, 2008 | Created by ImportBot | Imported from Library of Congress MARC record |