Showing results 1 - 8 of 8
January 21, 2021, Paper: "We document a unique driver of consumer behavior: the public disclosure of a firm’s gender pay gap. Four experiments provide causal evidence that when firms are revealed to have gender pay gaps, consumers are less willing to pay for their goods, a reaction driven by consumer perceptions of unfairness. Unlike reactions to CEO‐to‐worker wage gaps, this effect varies by consumers’ gender: compared to men, women show larger…
| David Deming | Jennifer Hochschild | Nathaniel Hendren | Will Dobbie | Daniel Schneider | Sandra Susan Smith | Danielle Allen | Cornell William Brooks | Dani Rodrik | Jason Furman
January 2021, Video; "Each week five experts give their 8- minute pitch for a big question, important finding, promising policy solution, or research frontier for the next generation of work on inequality."
Watch Complete Series Via Harvard Inequality and Social Policy on Youtube
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"This week: 6 Big Ideas. David J. Deming (Harvard Kennedy School) leads the…
2020, Paper: "Two experiments, including one incentive compatible study, examine the impact of cutting pay for executives versus employees in response to COVID-19 on consumer behavior. Study 1 explores the effect of announcing cuts or no cuts to CEO and employee pay, and shows that firms’ commitment to paying employees their full wages leads to the most positive consumer reactions. Study 2 further examines the effects of announcing employee and…
| Rohit Deshpandé
Consumers Avoid Buying from Firms with Higher CEO-to-Worker Pay Ratios. Rohit Deshpandé, Michael I. Norton, January 31, 2018, Paper, "We document a novel driver of consumer behavior: pay ratio disclosure. Swiss corporation performance data gathered during a legally mandated pay ratio referendum reveals that salient high pay ratios are associated with decreased firm sales (Pilot Study). An incentive-compatible field experiment shows that, when…
| Ashley Whillans
Time, Money, and Subjective Well-Being. Ashley Whillans, Michael I. Norton, 2017, Paper, "Time and money are scarce and precious resources: people experience stress about having insufficient time, and worry about having insufficient money. This chapter reviews research showing that the ways in which people spend their time and money, the tradeoffs that people make between having more time or having more money, and the extent to which people…
Tax Aversion in Labor Supply. Michael I. Norton, April 2016, Paper. "In a real-effort laboratory experiment, labor supply decreases more with the introduction of a tax than with a financially equivalent drop in wages. This "tax aversion" is large in magnitude: when we decompose the productivity decrease that arises from taxation, we estimate that 40% is due to the lower net wage and the remaining 60% to tax aversion. This tax aversion affects…
| Rohit Deshpandé
Paying Up for Fair Pay: Consumers Prefer Firms with Lower CEO-to-Worker Pay Ratios. Rohit Deshpandé, Michael I. Norton, 2015, Paper. "Prior research examining consumer expectations of equity and price fairness has not addressed wage fairness, as measured by a firm’s pay ratio. Pending legislation will require American public companies to disclose the pay ratio of CEO wage to the average employee’s wage. Our six studies show that pay ratio…
Botsourcing and Outsourcing: Robot, British, Chinese, and German Workers Are for Thinking—Not Feeling—Jobs. Michael I. Norton, April 2014, Paper. "Technological innovations have produced robots capable of jobs that, until recently, only humans could perform. The present research explores the psychology of “botsourcing”—the replacement of human jobs by robots—while examining how understanding botsourcing can inform the psychology of outsourcing—…