%0 Report
        %A Clark, Andrew E.
%A Masclet, David
%A Villeval, Marie Claire
        %T Effort and Comparison Income: Experimental and Survey Evidence
        %D 2006
        %8 2006 Jun
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 2169
        %U https://www.iza.org/publications/dp2169
        %X This paper considers the effect of status or relative income on work effort combining experimental evidence from a gift-exchange game with ISSP survey data. We find a consistent negative effect of others’ incomes on individual effort in both datasets. The individual’s rank in the income distribution is a stronger determinant of effort than others’ average income, suggesting that comparisons are more ordinal than cardinal. We then show that effort is also affected by comparisons over time: those who received higher income offers or had higher income rank in the past exert lower levels of effort for a given current income and rank.


        %K comparison income
%K peak-end
%K experiments
%K rank
%K effort