Putting Behavioral Economics to Work: Testing for Gift Exchange in Labor Markets Using Field Experiments

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Putting Behavioral Economics to Work: Testing for Gift Exchange in Labor Markets Using Field Experiments by Uri Gneezy

Recent discoveries in behavioral economics have led scholars to question the underpinnings of neoclassical economics. We use insights gained from one of the most influential lines of behavioral research—gift exchange—in an attempt to maximize worker effort in two quite distinct tasks: data entry for a university library and door-to-door fundraising for a research center. In support of the recei...

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Tax Liability Side Equivalence in Gift-Exchange Labor Markets

Tax Liability Side Equivalence (tax LSE) claims that the statutory incidence of a tax is irrelevant for its economic incidence. Tax LSE is predicted to hold in gift-exchange labor markets if workers’ effort choices exclusively depend on the net wage, but breaks down if they partially depend on the gross wage paid to workers. This is the case if the tax is perceived to be external to the gift-ex...

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ژورنال

عنوان ژورنال: Econometrica

سال: 2006

ISSN: 0012-9682,1468-0262

DOI: 10.1111/j.1468-0262.2006.00707.x