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DTSTAMP:20260912T051854Z
UID:https://www.econ.mpg.de/events/15664/13681
DTSTART:20180515T150000Z
CLASS:PUBLIC
CREATED:20181008T084606Z
DESCRIPTION:Two rules have figured prominently in both the descriptive and 
 prescriptive literatures on distributive justice\, viz.\, equality and equ
 ity. The former refers to equal shares\, whereas the latter refers to allo
 cations that are in proportion to some variable\, such as hours worked or 
 effort. We consider the possibility that worker experience with equal or e
 quitable compensation schemes affects their beliefs about which rule appli
 es. We formulate a simple model of fairness preferences that incorporates 
 the claim of the Just World Hypothesis that people are motivated to ration
 alize their actual rewards\, that is\, to adjust their beliefs about what 
 is fair in the direction of their actual allocations. A theory is formulat
 ed in conjunction with a natural field experiment in which Ethiopian worke
 rs complete a piecemeal task over a two week period. The theory predicts t
 hat high and low productivity workers\, whose beliefs are affected by thei
 r actual pay\, will respond in their work effort to changes in compensatio
 n schemes depending on whether they have initially been paid equally or eq
 uitably. The results of the experiment on worker effort are consistent wit
 h the changes predicted by the theory.\nSpeaker: James Konow
LAST-MODIFIED:20181008T084743Z
LOCATION:MPI\, Room: Ground Floor
SUMMARY:The Just World at Work: Theory and a Natural Field Experiment 
URL;VALUE=URI:https://www.econ.mpg.de/events/15664/13681
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