Abstract
The concept of “social norms” is often used in the literature to explain labor market phenomena that are otherwise difficult to understand through the lens of standard economic theory. This chapter surveys a small but growing experimental literature that aims to measure the social norms that individuals uphold in a variety of labor market contexts. The survey covers four broad topics, concerning (1) fair wage norms and norms of reciprocity in effort provision; (2) the existence of misalignments in the norms that prevail within the hierarchy of an organization; (3) the impact of work policies and labor market interventions on norms; and (4) gender norms. The picture that emerges from the survey highlights the importance of empirically measuring, in a direct way, the norms that prevail in a given context, rather than inferring them indirectly from observed behavior.
References
Abeler J, Nosenzo D, Raymond C (2019) Preferences for truth-telling. Econometrica 87(4):1115–1153
Akerlof GA (1982) Labor contracts as partial gift exchange. Q J Econ 97(4):543–569
Akerlof GA (1984) Gift exchange and efficiency-wage theory – 4 views. Am Econ Rev 74(2):79–83
Akerlof GA, Kranton RE (2000) Economics and identity. Q J Econ 115(3):715–753
Akerlof GA, Kranton RE (2005) Identity and the economics of organizations. J Econ Perspect 19(1):9–32
Akerlof GA, Yellen JL (1988) Fairness and unemployment. Am Econ Rev 78(2):44–49
Akerlof GA, Yellen JL (1990) The fair wage-effort hypothesis and unemployment. Q J Econ 105(2):255–283
Andreoni J, Bernheim BD (2009) Social image and the 50–50 norm: a theoretical and experimental analysis of audience effects. Econometrica 77(5):1607–1636
Attanasi G, Rimbaud C, Villeval MC (2019) Embezzlement and guilt aversion. J Econ Behav Organ 167:409
Banerjee R (2016) On the interpretation of bribery in a laboratory corruption game: moral frames and social norms. Exp Econ 19(1):240–267
Barr A, Lane T, Nosenzo D (2018) On the social inappropriateness of discrimination. J Public Econ 164:153–164
Bartoš V, Pertold-Gebicka B (2018) Parental leave length, social norms, and female labor market re-entry frictions. Int J Manpow 39:600
Beer R, Rios IA, Saban D (2018) Increased transparency in procurement: the role of peer-effects. Research paper no 3706. Stanford University Graduate School of Business, Rochester
Bénabou R, Tirole J (2006) Incentives and prosocial behavior. Am Econ Rev 96(5):1652–1678
Bernheim BD (1994) A theory of conformity. J Polit Econ 102(5):841–877
Bertrand M, Kamenica E, Pan J (2015) Gender identity and relative income within households. Q J Econ 130(2):571–614
Bewley T (1999) Why wages don’t fall in a recession. Harvard University Press, Cambridge
Bicchieri C (2006) The grammar of society: the nature and dynamics of social norms. Cambridge University Press, Cambridge
Bicchieri C (2017) Norms in the wild. Oxford University Press, New York
Bicchieri C, Xiao E (2009) Do the right thing: but only if others do so. J Behav Decis Mak 22(2):191–208
Bicchieri C, Dimant E, Gaechter S, Nosenzo D (2019) Observability, social proximity, and the erosion of norm compliance. Discussion paper. Rochester. SSRN 3355028
Brandts J, Charness G (2004) Do labour market conditions affect gift exchange? Some experimental evidence. Econ J 114(497):684–708
Breza E, Kaur S, Krishnaswamy N (2019) Scabs: the social suppression of labor supply. NBER working paper no 25880
Burks SV, Krupka E (2012) A multimethod approach to identifying norms and normative expectations within a corporate hierarchy: evidence from the financial services industry. Manag Sci 58(1):203–217
Bursztyn L, González A, Yanagizawa-Drott D (2018) Misperceived social norms: female labor force participation in Saudi Arabia. NBER working paper no 24736
Chadi A, Mechtel M, Mertins V (2019) Smartphone bans and workplace productivity in a routine task – evidence from a field experiment. Unpublished manuscript
Chang D, Chen R, Krupka E (2019) Rhetoric matters: a social norms explanation for the anomaly of framing. Games Econ Behav 116:158–178
Charness G, Chen Y (2019) Social identity, group behavior and teams. Unpublished manuscript
Choi B, Ahn S, Lee S (2017a) Construction workers’ group norms and personal standards regarding safety behavior: social identity theory perspective. J Manag Eng 33(4):04017001
Choi B, Ahn S, Lee S (2017b) Role of social norms and social identifications in safety behavior of construction workers. I: theoretical model of safety behavior under social influence. J Constr Eng Manag 143(5):04016124
d’Adda G, Darai D, Pavanini N, Weber RA (2017) Do leaders affect ethical conduct? J Eur Econ Assoc 15(6):1177–1213
d’Adda G, Dufwenberg M, Passarelli F, Tabellini G (2019) Partial norms. CESifo working paper no 7568
Dellavigna S, List JA, Malmendier U, Rao G (2017) Voting to tell others. Rev Econ Stud 84(1):143–181
Drouvelis M, Powdthavee N (2015) Are happier people less judgmental of other people’s selfish behaviors? Experimental survey evidence from trust and gift exchange games. J Behav Exp Econ 58:111–123
Exley CL, Niederle M, Vesterlund L (2018) Knowing when to ask: the cost of leaning in. J Polit Econ
Falk A, Fehr E, Zehnder C (2006) Fairness perceptions and reservation wages – the behavioral effects of minimum wage laws. Q J Econ 121(4):1347–1381
Fehr E, Schurtenberger I (2018) Normative foundations of human cooperation. Nat Hum Behav 2(7):458–468
Fehr E, Kirchsteiger G, Riedl A (1993) Does fairness prevent market clearing – an experimental investigation. Q J Econ 108(2):437–459
Fischbacher U, Föllmi-Heusi F (2013) Lies in disguise – an experimental study on cheating. J Eur Econ Assoc 11(3):525–547
Fortin NM (2015) Gender role attitudes and women’s labor market participation: opting-out, AIDS, and the persistent appeal of housewifery. Ann Econ Stat 117/118:379–401
Gächter S, Nosenzo D, Sefton M (2013) Peer effects in pro-social behavior: social norms or social preferences? J Eur Econ Assoc 11(3):548–573
Gächter S, Gerhards L, Nosenzo D (2017) The importance of peers for compliance with norms of fair sharing. Eur Econ Rev 97(C):72–86
Gangadharan L, Jain T, Maitra P, Vecci J (2016) Social identity and governance: the behavioral response to female leaders. Eur Econ Rev 90:302–325
Gauri V, Rahman T, Sen I (2019) Measuring social social norms about female labor force participation in Jordan. Policy research working paper no 8916. World Bank Group
Görges L (2015) The power of love: a subtle driving force for Unegalitarian labor division? Rev Econ Househ 13(1):163–192
Görges L (2019) Wage earners, homemakers & gender identity – using an artefactual field experiment to understand couples’ specialisation choices. Working paper. https://drive.google.com/file/d/1gMbfVLvS_I1jxUoBjuzBdhDe9k2QURUZ/view. Last accessed 2 Dec 2019
Kahneman D, Knetsch JL, Thaler RH (1986) Fairness as a constraint on profit seeking – entitlements in the market. Am Econ Rev 76(4):728–741
Kaur S (2019) Nominal wage rigidity in village labor markets. Am Econ Rev 109:3585
Kimbrough EO, Vostroknutov A (2016) Norms make preferences social. J Eur Econ Assoc 14:608–638
Koenig J, Neyse L, Schroeder C (2019) Fair enough? Minimum wage effects on fair wages. Discussion paper. SSRN 3409913
Kölle F, Lane T, Nosenzo D, Starmer C (2019) Low-cost interventions to promote voter registration: what works and why? Behav Public Policy
Krupka E, Weber RA (2013) Identifying social norms using coordination games: why does dictator game sharing vary? J Eur Econ Assoc 11(3):495–524
Krupka E, Leider S, Jiang M (2017) A meeting of the minds: informal agreements and social norms. Manag Sci 63(6):1708–1729
McAdams RH (2015) The expressive powers of law. Harvard University Press, Cambridge, MA
Naylor R (1989) Strikes, free riders, and social customs. Q J Econ 104(4):771–785
Nikiforakis N, Oechssler J, Shah A (2014) Hierarchy, coercion, and exploitation: an experimental analysis. J Econ Behav Organ 97:155–168
Raghavarao D, Federer WT (1979) Block total response as an alternative to the randomized response method in surveys. J Royal Stat Soc Ser B Methodol 41(1):40–45
Reuben E, Riedl A (2013) Enforcement of contribution norms in public good games with heterogeneous populations. Games Econ Behav 77(1):122–137
Rustichini A, Villeval MC (2014) Moral hypocrisy, power and social preferences. J Econ Behav Organ 107(Part A):10–24
Schram A, Charness G (2015) Inducing social norms in laboratory allocation choices. Manag Sci 61(7):1531–1546
Sugden R (1998) Normative expectations: the simultaneous evolution of institutions and norms. In: Ben-Ner A, Putterman LG (eds) Economics, values, and organization. Cambridge University Press, Cambridge
Sugden R (2000) The motivating power of expectations. In: Nida-Rümelin J, Spohn W (eds) Rationality, rules, and structure. Springer, Dordrecht, pp 103–129
The World Bank Group (2019) Labor force participation rate, female (% of female population ages 15+) (modeled ILO estimate). Statistical table. https://data.worldbank.org/indicator/SL.TLF.CACT.FE.ZS. Last accessed 2 Dec 2019
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Section Editor information
Rights and permissions
Copyright information
© 2020 Springer Nature Switzerland AG
About this entry
Cite this entry
Görges, L., Nosenzo, D. (2020). Social Norms and the Labor Market. In: Zimmermann, K. (eds) Handbook of Labor, Human Resources and Population Economics. Springer, Cham. https://doi.org/10.1007/978-3-319-57365-6_131-1
Download citation
DOI: https://doi.org/10.1007/978-3-319-57365-6_131-1
Received:
Accepted:
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-57365-6
Online ISBN: 978-3-319-57365-6
eBook Packages: Springer Reference Economics and FinanceReference Module Humanities and Social SciencesReference Module Business, Economics and Social Sciences