Perceptions of Equity and the Distribution of Income
AbstractThis article develops a model in which quit rates, and thus the income distribution, depend on employee perceptions of the accuracy of employer assessments of individual productivity because these latter assessments affect wages. When employees believe that these assessments are accurate, income inequality tends to be high. The model can account for the negative correlation across some countries of inequality and the extent to which inequality is deemed to be excessive. It also fits the contrast in U.S. and French experiences concerning the tenure of highly educated workers with high wages relative to the tenure of lower-paid workers.
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Bibliographic InfoArticle provided by University of Chicago Press in its journal Journal of Labor Economics.
Volume (Year): 20 (2002)
Issue (Month): 2 (Part)
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Web page: http://www.journals.uchicago.edu/JOLE/
Other versions of this item:
- Julio J. Rotemberg, 1996. "Perceptions of Equity and the Distribution of Income," NBER Working Papers 5624, National Bureau of Economic Research, Inc.
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
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