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Fairness and Freight-Handlers : Local Labor-Market Conditions and Wage-Fairness Perceptions in a Trucking Firm

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dc.creator Verhoogen, Eric A.
dc.creator Burks, Stephen V.
dc.creator Carpenter, Jeffrey P.
dc.date 2004
dc.date.accessioned 2013-10-16T07:11:30Z
dc.date.available 2013-10-16T07:11:30Z
dc.date.issued 2013-10-16
dc.identifier http://hdl.handle.net/10419/20623
dc.identifier ppn:474478947
dc.identifier.uri http://koha.mediu.edu.my:8181/xmlui/handle/10419/20623
dc.description This paper draws on evidence from an internal attitude survey in the freight-handling terminals of a unionized trucking firm to investigate the effect of local labor market conditions on employee wage-fairness perceptions. The key element of our research design is that local managers have no discretion to vary wage rates in response to local labor market conditions; local economic shocks thus generate exogenous variation in the attractiveness of the wage paid by the firm relative to employees? options in the outside labor market. We find robust associations between two indicators of local conditions – the rate of unemployment and the wages of similar workers in the outside market – and the wage-fairness perceptions of employees in the firm, which we argue reflects a causal relationship. As an extension, we relate the changes in local conditions and fairness perceptions to changes in employee performance, as measured by the rate of disciplinary dismissals. We find suggestive evidence that increased local unemployment leads to improved employee performance, and, conditional on a particular assumption about the mechanism through which local conditions affect performance, that increases in wage-fairness perceptions lead employees to supply more effort.
dc.language eng
dc.relation IZA Discussion paper series 1352
dc.rights http://www.econstor.eu/dspace/Nutzungsbedingungen
dc.subject D23
dc.subject Z13
dc.subject J41
dc.subject ddc:330
dc.subject fairness
dc.subject gift exchange
dc.subject reference point
dc.subject efficiency wage
dc.subject Lohn
dc.subject Gerechtigkeit
dc.subject Meinung
dc.subject Regionaler Arbeitsmarkt
dc.subject Regionale Arbeitslosigkeit
dc.subject Güterverkehrsgewerbe
dc.subject Schätzung
dc.subject Vereinigte Staaten
dc.title Fairness and Freight-Handlers : Local Labor-Market Conditions and Wage-Fairness Perceptions in a Trucking Firm
dc.type doc-type:workingPaper

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