Social Sciences
4 years ago

Inequality-averse workers may face higher pay gaps in organizations.

HAL (Le Centre pour la Communication Scientifique Directe)
Inequality Aversion and the Distribution of Rewards in Organizations
Mamadou Gueye, Nicolas Quérou, Raphaël Soubeyran

Paper Summary

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Workers who don't like inequality can actually lead to higher pay differences and more inequality in organizations. This is because they need bigger rewards to feel okay with their tasks being different. Some workers really hate inequality, while others don't mind it as much. The way rewards are given out can also affect how much inequality there is. If the boss can easily pick the best outcome, things could be very different.