AbstractThe empirical literature on happiness finds that employment significantly contributes to well-being. We propose a dynamic model that explains why individuals may nonetheless be reluctant to pick up low-paid work. Accepting low-paid work will put them in an adverse position in future wage bargaining, as employers could infer the individual's low reservation wage from his working history. Employers will exploit their knowledge by offering low wages to this individual in the future. Therefore, employees with low reservation wage strategically opt into unemployment to signal a high reservation wage.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Mohr Siebeck, Tübingen in its journal Journal of Institutional and Theoretical Economics.
Volume (Year): 166 (2010)
Issue (Month): 3 (September)
Contact details of provider:
Web page: http://www.mohr.de/jite
Postal: Mohr Siebeck GmbH & Co. KG, P.O.Box 2040, 72010 Tübingen, Germany
Other versions of this item:
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
- J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
- J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- René Böheim & Andrea Weber, 2006.
"The effects of marginal employment on subsequent labour market outcomes,"
Economics working papers
2006-12, Department of Economics, Johannes Kepler University Linz, Austria.
- René Böheim & Andrea Weber, 2011. "The Effects of Marginal Employment on Subsequent Labour Market Outcomes," German Economic Review, Verein für Socialpolitik, vol. 12(2), pages 165-181, 05.
- Böheim, René & Weber, Andrea, 2006. "The Effects of Marginal Employment on Subsequent Labour Market Outcomes," IZA Discussion Papers 2221, Institute for the Study of Labor (IZA).
- Schnedler, Wendelin & Vanberg, Christoph, 2014.
"Playing 'Hard to Get': An Economic Rationale for Crowding Out of Intrinsically Motivated Behavior,"
IZA Discussion Papers
8108, Institute for the Study of Labor (IZA).
- Schnedler, Wendelin & Vanberg, Christoph, 2014. "Playing ‘hard to get’: An economic rationale for crowding out of intrinsically motivated behavior," European Economic Review, Elsevier, vol. 68(C), pages 106-115.
- Schnedler, Wendelin & Vanberg, Christoph, 2014. "Playing 'Hard to Get': An Economic Rationale for Crowding Out of Intrinsically Motivated Behavior," Working Papers 0559, University of Heidelberg, Department of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Wolpert).
If references are entirely missing, you can add them using this form.