PROCEDURAL UNFAIR WAGE DIFFERENTIALS AND THEIR EFFECTS ON UNETHICAL BEHAVIOR

• DOI: 10.1111/ecin.12906
• Publication Date: 2020-05-29T16:10:01Z
• Authors: Kerstin Grosch; Holger A. Rau
• Keywords: Inequity aversion; Loss aversion; Wage Inequality

In this paper, we investigate how payment procedures that are deemed unfair can spur unethical behavior towards innocent coworkers in a real‐effort experiment. our Discrimination treatment, highly procedure with wage differentials, half the workforce is randomly selected and paid by relative performance whereas remaining receives no payment. A joy‐of‐destruction game measures subsequently. Non‐earners destroy significantly more than non‐discriminatory control treatments. , generally high for all non‐earners, independent of individual inequality aversion beliefs. treatments, main driver destructive behavior. ( JEL C91, D03, J33, J70, M52)