Status Concerns and the Organization of Work
AbstractWe study the effects of local status, where workers compare their wage to the wage of other workers within the same firm. We assume a competitive labor market with unobservable effort, where firms condition wages on output as incentive for effort. If workers who care about status are also more productive, such status concerns generate an equilibrium with heterogenous firms where workers who care and workers who do not care about status work together.
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Bibliographic InfoPaper provided by Tel Aviv in its series Papers with number 2001-2.
Length: 44 pages
Date of creation: 2001
Date of revision:
Contact details of provider:
Postal: Israel TEL-AVIV UNIVERSITY, THE FOERDER INSTITUTE FOR ECONOMIC RESEARCH, RAMAT AVIV 69 978 TEL AVIV ISRAEL.
Web page: http://econ.tau.ac.il/research/foerder.asp
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WAGES ; WORKERS ; DISCRIMINATION;
Find related papers by JEL classification:
- D4 - Microeconomics - - Market Structure and Pricing
- J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
- I2 - Health, Education, and Welfare - - Education
- Z1 - Other Special Topics - - Cultural Economics
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