Unfair Pay and Health

Falk, Armin; Kosse, Fabian; Menrath, Ingo; Verde, Pablo E. und Siegrist, Johannes (2018): Unfair Pay and Health. In: Management Science, Bd. 64, Nr. 4: S. 1477-1488

Abstract

This paper investigates physiological responses to perceptions of unfair pay. We use an integrated approach that exploits complementarities between controlled laboratory and representative panel data. In a simple principal-agent experiment, agents produce revenue by working on a tedious task. Principals decide how this revenue is allocated between themselves and their agents. Throughout the experiment we record agents' heart rate variability, which is an indicator of stress-related impaired cardiac autonomic control and which has been shown to predict coronary heart disease in the long run. Our findings establish a link between unfair payment and heart rate variability. Building on these findings, we further test for potential adverse health effects of unfair pay using observational data from a large representative panel data set. Complementary to our experimental findings we show a strong and significant negative association between unfair pay and health outcomes, in particular cardiovascular health.

• Dokumententyp: Zeitschriftenartikel
• Keywords: experiments;fairness;health;heart rate variability;inequality;social preferences;SOEP
• Fakultät: Volkswirtschaft
• Themengebiete: 300 Sozialwissenschaften > 300 Sozialwissenschaft, Soziologie ; 300 Sozialwissenschaften > 330 Wirtschaft
• ISSN: 0025-1909
• Sprache: Englisch