Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/96427 
Year of Publication: 
2012
Series/Report no.: 
Working Papers No. 12-6
Publisher: 
Federal Reserve Bank of Boston, Boston, MA
Abstract: 
The authors use a labor supply; relative pay; experimental economics laboratory experiment to examine the impact of relative wages on labor supply. They 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. They find that labor supply does respond significantly to relative pay, and in the expected direction. However, when a strong enough reason is given for the relative low pay, this difference disappears.
Subjects: 
labor supply
relative pay
experimental economics
JEL: 
J22
J31
D03
Document Type: 
Working Paper

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