The article explores how different wage-setting systems affect workers' pay and effort in gift exchange experiments. They compare a minimum wage set by the government to workers proposing their own minimum wage. The study shows that a government-imposed minimum wage lowers average pay offers but doesn't affect workers' effort. On the other hand, when workers propose their own minimum wage, pay offers increase slightly, but effort decreases when wages aren't met. Overall, the study suggests that the way wages are set can impact pay, effort, and efficiency in the workplace.