Social Responsibility Messages and Worker Wage Requirements: Field Experimental Evidence from Online Labor Marketplaces

What is it about?

This paper presents the results of two field experiments in which workers applied for short-term jobs online and, in some cases, were given information about the employer’s charitable giving. In the first experiment, this information prompted applicants to accept slightly lower payments on average, with the highest performing workers responding most strongly. In the second experiment, prospective workers submitted 44% lower bids for payment after getting information about the employer’s philanthropy.

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Why is it important?

This paper provides causal evidence that workers are willing to accept lower wages to work for a socially responsible firm. It also serves as an example of how field experiments can be implemented in online labor marketplaces to elicit the revealed preferences and behavior of workers.