publication . Preprint . 2013

Minimum Wages and Workers' "Motivation": An approach using an economic experiment (Japanese)

MORI Tomoharu;
Open Access
  • Published: 01 Mar 2013
Abstract
This paper investigates the effect of minimum wages on workers' effort levels (motivation) using an economic experiment conducted in a laboratory. Under the gift-exchange theory, if firms pay higher wages, workers exert more effort. Vice versa, if firms pay lower wages, workers exert less effort. Minimum wages affect the judgment as to whether the wages being paid are high or low. In general, wages near the minimum appear unattractive. However, it is possible that the same level of wage will appear attractive if minimum wages did not exist. Moreover, the existence of minimum wages affects unemployment. Under larger unemployment, the effort level of workers is hi...

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