Do Labour Market Conditions Affect Gift Exchange? Some Experimental Evidence

25 Pages Posted: 16 Sep 2011  

Jordi Brandts

Instituto de Analisis Economico (CSIC) Barcelona

Gary Charness

University of California, Santa Barbara - Department of Economics

Multiple version iconThere are 3 versions of this paper

Date Written: July 2004

Abstract

We study how two dimensions of market conditions affect behaviour in experimental gift‐exchange markets with repeated interaction. First, we consider the impact of competitive imbalance, by varying whether there is an excess supply of firms or an excess supply of workers in the market. Second, we impose a minimum wage in the market with an excess supply of workers, and study the overall effect on wages and productivity. Perhaps surprisingly, the state of competition does not appear to have strong effects in our data; however, there is some evidence of lower productivity when a minimum wage is imposed.

Suggested Citation

Brandts, Jordi and Charness, Gary, Do Labour Market Conditions Affect Gift Exchange? Some Experimental Evidence (July 2004). The Economic Journal, Vol. 114, Issue 497, pp. 684-708, 2004. Available at SSRN: https://ssrn.com/abstract=1928425 or http://dx.doi.org/10.1111/j.1468-0297.2004.00237.x

Jordi Brandts (Contact Author)

Instituto de Analisis Economico (CSIC) Barcelona ( email )

UAB Campus
E-08193 Bellaterra
Spain

Gary Charness

University of California, Santa Barbara - Department of Economics ( email )

2127 North Hall
Santa Barbara, CA 93106
United States
805-893-2412 (Phone)
805-893-8830 (Fax)

Paper statistics

Downloads
1
Abstract Views
256