Self-esteem achievement through work and socio-demographic disparities in the labor market
We develop a model in which agents choose whether to achieve self-esteem through work. When they do, they develop an intrinsic motivation to effort. Depending on the characteristics of the job to be filled, an employer may try, or not, to encourage this intrinsic motivation by an adequately designed contract. Although equally productive, assuming that agents from distinct socio-demographic groups differ in their propensity to achieve self-esteem through work, this may lead to unequal access to employment. We analyse the consequences of this model on labor market outcomes. The model can give an account of many important traits of socio-demographic disparities in the labor market (notably of vertical occupational segregation.
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