Replication data for: Fairness and Frictions: The Impact of Unequal Raises on Quit Behavior

Principal Investigator(s): View help for Principal Investigator(s) Arindrajit Dube; Laura Giuliano; Jonathan Leonard

Version: View help for Version V1

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data			10/12/2019 06:00:AM
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Project Citation:

Dube, Arindrajit, Giuliano, Laura, and Leonard, Jonathan. Replication data for: Fairness and Frictions: The Impact of Unequal Raises on Quit Behavior. Nashville, TN: American Economic Association [publisher], 2019. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12. https://doi.org/10.3886/E113123V1

Project Description

Summary: We analyze how separations responded to arbitrary differences in own and peer wages at a large US retailer. Regression-discontinuity estimates imply large causal effects of own-wages on separations, and on quits in particular. However, this own-wage response could reflect comparisons either to market wages or to peer wages. Estimates using peer-wage discontinuities show large peer-wage effects and imply the own-wage separation response mostly reflects peer comparisons. The peer effect is driven by comparisons with higher-paid peers—suggesting concerns about fairness. Separations appear fairly insensitive when raises are similar across peers—suggesting search frictions and monopsony are relevant in this low-wage sector.

Scope of Project

JEL Classification:
      D63 Equity, Justice, Inequality, and Other Normative Criteria and Measurement
      J31 Wage Level and Structure; Wage Differentials
      J42 Monopsony; Segmented Labor Markets
      J62 Job, Occupational, and Intergenerational Mobility; Promotion
      L81 Retail and Wholesale Trade; e-Commerce

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V1 [2019-10-12]

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