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
More information through EDIRC
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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- Glazer, Amihai & Kanniainen, Vesa & Poutvaara, Panu, 2004.
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- Kräkel, Matthias, 2005. "Emotions and the Optimality of Unfair Tournaments," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 45, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
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- Cabrales Goitia Antonio & Calvó-Armengol Antoni, 2007.
"Aversion to Inequality and Segregating Equilibria,"
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- Auriol, Emmanuelle & Renault, Régis, 2000. "The Costs and Benefits of Symbolic Differentiation in the Work Place," IDEI Working Papers 101, Institut d'Économie Industrielle (IDEI), Toulouse, revised 2002.
- Antonio Cabrales & Antoni Calvó, 2002. "Social preferences and skill segregation," Economics Working Papers 629, Department of Economics and Business, Universitat Pompeu Fabra.
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