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Contribution Details

Type Working Paper
Scope Discipline-based scholarship
Title Do Workers Enjoy Procedural Utility?
Organization Unit
Authors
  • Matthias Benz
  • Alois Stutzer
Language
  • English
Institution University of Zurich
Series Name Working paper series / Institute for Empirical Research in Economics
Number No. 127
ISSN 1424-0459
Date 2002
Abstract Text People are likely to obtain utility not only from actual outcomes, but also from the conditions which lead to these outcomes. This paper empirically tests the notion of procedural utility for the context of work relationships. Using a large survey among British workers, we find substantial procedural effects on the utility workers derive from their pay. Utility from pay is not only strongly influenced by economic outcomes (the pay levels workers get for given inputs), but also by the way pay is determined. The findings are robust to a series of alternative explanations.
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