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A Tale on Information and Wage Expectations

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Author Info

  • De Paola Maria

    (University of Calabria)

  • Lupi Claudio

    ()
    (ISAE - Institute for Studies and Economic Analyses)

  • Ordine Patrizia

    ()
    (University of Calabria)

Abstract

The process of wage expectations formation in different regional labor markets is considered. We argue that when information is scarce or ambiguous, cognitive dissonance phenomena may play a relevant role in shaping expectations. The theoretical discussion is supplemented with an empirical analysis carried out on individual data of Italian unemployed using semiparametric techniques. Results show a marked difference in expectations formation, with the northern unemployed using information more efficiently.

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File URL: http://lipari.istat.it/digibib/Working_Papers/depaola_lupi_ordine_22_2001.pdf
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Bibliographic Info

Paper provided by ISTAT - Italian National Institute of Statistics - (Rome, ITALY) in its series ISAE Working Papers with number 22.

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Length: 37 pages
Date of creation: Jul 2001
Date of revision:
Handle: RePEc:isa:wpaper:22

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Related research

Keywords: Wage; Expectations formation; Regional labor markets.;

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Cited by:
  1. Maria De Paola & Vincenzo Scoppa, 2002. "Firms' Training Decisions and Unemployment in Italian Labour Markets," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 61(1), pages 103-126, June.

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