Homo Reciprocans: Survey Evidence on Behavioural Outcomes

Homo Reciprocans: Survey Evidence on Behavioural Outcomes This paper complements the experimental literature that has shown the importance of reciprocity for behaviour in stylized labour markets or other decision settings. We use individual measures of reciprocal inclinations in a large, representative survey, and relate reciprocity to real world labour market behaviour and life outcomes. We find that reciprocity matters, and we find that the way in which it matters is very much in line with the experimental evidence. In particular, positive reciprocity is associated with receiving higher wages and working harder. Negatively reciprocal inclinations tend to reduce effort. Firms do not pay lower wages to individuals with strong negatively reciprocal inclinations. Instead, negative reciprocity increases the likelihood of being unemployed. Looking at broader measures of success, in terms of number of close friends, and subjective well-being, we find that positively reciprocal inclination are associated with greater happiness and ability to sustain friendship relations, with the opposite being true for negative reciprocity.