Prof. Theresa Libby (University of Waterloo)

Program

Date: February 7, 2017

Time: 16.15 - 17.45 Uhr

Place: Schackstr. 4, Raum 307

Title: Vertical Pay Dispersion, Peer Observability and Reporting Norms

Abstract

In this study, we examine whether vertical pay dispersion moderates the relation between peer observability and subordinate’s misreporting behavior in an experimental setting. We extend this research on the impact of vertical pay dispersion on reporting honesty by examining the interaction between members of superior-subordinate triads (two subordinates assigned to each superior) in the presence of both vertical pay dispersion (high/low) and peer observability (present/absent). We hypothesize that peer observability shapes subordinate’s reporting norms differently depending upon different levels of vertical pay dispersion. We predict and find that when vertical pay dispersion is low, subordinates misreport less in the presence of peer observability than in its absence, whereas when vertical pay dispersion is high, subordinates misreport more in the presence of peer observability than in its absence. Furthermore, we find that when vertical pay dispersion is low, subordinates are more influenced by peers who are more (vs. less) honest than themselves and when vertical pay dispersion is high, subordinates are more influenced by peers who are less (vs. more) honest than themselves. Implications for theory and practice are discussed.