University of Calgary
UofC Navigation

The Effect of Known Asymmetric Remuneration on Productivity in a Real(ish) Labor Market - Gustavo Caballero

Date & Time:
November 4, 2015 | 3:00 pm - 4:30 pm
SS 423
Gustavo Caballero, Department of Economics

ABSTRACTWe investigate the effect of known remuneration asymmetry on worker production and job satisfaction in an online labor market.  Workers in our experiment are paid a piece rate for solving puzzles. We vary the remuneration workers earn for solving these puzzles and the information they receive regarding the remuneration of others. On the one hand, predictably, we find workers who are paid more are significantly more satisfied than workers who are paid less. On the other hand, we find that relatively small differences in remuneration do not affect productivity. However, when the remuneration differences become large, worker productivity drops significantly. Such results suggest that while small differences in remuneration affect worker satisfaction these same small differences in worker remuneration may not necessarily translate to lower productivity.

Get Connected