TY  - RPRT
        AU  - Clark, Andrew E.
AU  - Masclet, David
AU  - Villeval, Marie Claire
        TI  - Effort and Comparison Income: Experimental and Survey Evidence
        PY  - 2006/Jun/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 2169
        UR  - https://www.iza.org/publications/dp2169
        AB  - 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.


        KW  - comparison income
KW  - peak-end
KW  - experiments
KW  - rank
KW  - effort
        ER  -