Koch, Christian - In: Journal for labour market research 55 (2021) 1/5, pp. 1-17
I examine whether reference points can provide an explanation for rigid wages in recessions. Even though a recession … provides a good reason to adjust wages downward, workers' perception of a "fair wage" may depend on their previous wage, their … stipulated wages-can serve as reference points. My experimental results show that with initial contracts workers punish wage cuts …