Can reference points explain wage rigidity? Experimental evidence

Journal for Labour Market Research

Table 2 Summary of treatments

Treatments	Information about out-of-recession wage in recession	Initial contracts (explicit agreement)	Extended feedback	Sessions	Number of subjects
BASE	No	No	No	6	68
CasRP	Yes	Yes	No	6	70
WasRP	Yes	No	No	6	68
CasRP-F	Yes	Yes	Yes	6	72

Notes: While all treatments except BASE inform workers about the out-of-recession wage also in recession, initial contracts and, thus, an explicit agreement about the out-of-recession wage is only given in CasRP/CasRP-F but not in WasRP. Finally, firms are only provided with extended feedback in CasRP-F