The European University for Well-Being (EUniWell)

Speaker:
Heiner Schumacher (University of Innsbruck)

Work Meaning and Fair Wages

Abstract: Work meaning can be an important driver of labor supply. Since, by definition, work meaning is associated with benefits for others, it also has an important fairness dimension. In a theoretical model, we show that workers' willingness to pay for work meaning can be positive or negative, depending on the relative strength of fairness concerns and meaning preferences. To examine the importance of these behavioral motives for labor supply, we conduct a survey experiment with representative samples from the Netherlands and Germany in which we vary within-subject the benefits that a job creates for others. We find that only a minority of workers is actually willing to sacrifice wages for work meaning. The average willingness to pay for work meaning is positive, but substantially lower than the willingness to pay for job flexibility. There is a strong negative relationship between fairness concerns and willingness to pay for work meaning. Further, the level of sorting on work meaning is small. There is a sizable group of workers with high willingness to pay for work meaning, but low societal contributions in the current job.

Website