Fairness and Frictions: The Impact of Unequal Raises on Quit Behavior

• 成果类型: Article
• 署名作者: Dube, Arindrajit; Giuliano, Laura; Leonard, Jonathan
• 署名单位: University of Massachusetts System; University of Massachusetts Amherst; National Bureau of Economic Research; University of California System; University of California Santa Cruz; University of California System; University of California Berkeley
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.20160232
• 发表日期: 2019
• 页码: 620-663
• 关键词: regression discontinuity designs; LABOR-MARKET EVIDENCE; minimum-wage; class size; monopsony; INEQUALITY; satisfaction; FIRMS; POWER

摘要

We analyze how separations responded to arbitrary differences in own and peer wages at a large US retailer. Regression-discontinuity estimates imply large causal effects of own-wages on separations, and on quits in particular. However, this own-wage response could reflect comparisons either to market wages or to peer wages. Estimates using peer-wage discontinuities show large peer-wage effects and imply the own-wage separation response mostly reflects peer comparisons. The peer effect is driven by comparisons with higher-paid peers-suggesting concerns about fairness. Separations appear fairly insensitive when raises are similar across peers-suggesting search frictions and monopsony are relevant in this low-wage sector.