Econometric analyses of European datasets suggest that income aspirations increase with current income. This finding is consistent with the adaptation hypothesis –the notion that individual aspirations adjust to reflect personal circumstances and living conditions. We add to these existing...

We explore the role of reciprocity in wage determination by combining experimentaland survey data. The experiment is similar to Berg, Dickhaut and McCabe's (1995) and is conducted with Ghanaian manufacturing workers. The survey relates to the same sample workers and the firms within which they...