In a previous work, we have developed a model in which agents choose whether to achieve self-esteem through work. When they do, they develop an intrinsic motivation to effort. The analysis was restricted to an employment relation (employers were monopsons). In the present study, we analyze the consequences of this model on labor outcomes. The model can give an account of many important traits of socio-demographic disparities in the labor market (notably of vertical occupational segregation). We consider how the structure of the labor market conditions this account.
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