A Theoretical Note on Assymmetries in Intensity and Persistence of Reciprocity in Labour Markets

Marco Fongoni

Research output: Working paperDiscussion paper

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Abstract

This paper presents a model that can account for, and explain, two well documented empirical asymmetries characterising a worker's reciprocity: negative reciprocity is both stronger, and more persistent, than positive reciprocity. The stronger intensity of negative reciprocity is driven by the worker being loss averse; the longer persistence is driven by the slower adaptation of the worker to wage changes that are perceived as unfair.
Original languageEnglish
Place of PublicationGlasgow
PublisherUniversity of Strathclyde
Number of pages9
Publication statusPublished - 31 May 2018

Publication series

NameStrathclyde Discussion Papers in Economics
PublisherUniversity of Strathclyde
Volume18-15

Keywords

  • reciprocity
  • loss aversion
  • adaptation
  • asymmetries

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