% WARNING: This file may contain UTF-8 (unicode) characters. % While non-8-bit characters are officially unsupported in BibTeX, you % can use them with the biber backend of biblatex % usepackage[backend=biber]{biblatex} @techreport{NBERw22491, title = "The Morale Effects of Pay Inequality", author = "Breza, Emily and Kaur, Supreet and Shamdasani, Yogita", institution = "National Bureau of Economic Research", type = "Working Paper", series = "Working Paper Series", number = "22491", year = "2016", month = "August", doi = {10.3386/w22491}, URL = "http://www.nber.org/papers/w22491", abstract = {The idea that worker utility is affected by co-worker wages has potentially broad labor market implications. In a month-long experiment with Indian manufacturing workers, we randomize whether co-workers within production units receive the same flat daily wage or different wages (according to baseline productivity rank). For a given absolute wage, pay inequality reduces output and attendance by 0.24 standard deviations and 12%, respectively. These effects strengthen in later weeks. Pay disparity also lowers co-workers’ ability to cooperate in their self-interest. However, when workers can clearly observe productivity differences, pay inequality has no discernible effect on output, attendance, or group cohesion.}, }