Information transparency, fairness and labor market efficiency
نویسنده
چکیده
The paper studies the role of information transparency on fairness concerns, welfare and e ciency. When the rm's productivity and ultimately pro ts are revealed, wage o ers induce relatively fair divisions of potential gains and workers respond with higher performance. Workers respond not only to wages but also to rms' intentions concerning fairness. Information transparency serves as a mechanism that promotes fairness and performance while the lack of transparency results in reduced earnings for workers and market ine ciency.
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