• Corpus ID: 11038179

The Behavioral Economics of the Labor Market : Central Findings and Their Policy Implications

@inproceedings{Fehr2007TheBE,
  title={The Behavioral Economics of the Labor Market : Central Findings and Their Policy Implications},
  author={Ernst Fehr and Lorenz Goette},
  year={2007}
}
Many labor markets are characterized by long-term employment relations and incomplete labor contracts. The employees’ effort, in particular, is typically not contractible so that effort needs to be enforced endogenously in repeated interactions. Theory and evidence shows that under these conditions fairness concerns play an important role in affecting effort choices and wage setting, rendering wage levels and wages’ responsiveness to shocks rather rigid. In addition, loss aversion and money… 
A Behavioral Account of the Labor Market: The Role of Fairness Concerns
In this paper, we argue that important labor market phenomena can be better understood if one takes (i) the inherent incompleteness and relational nature of most employment contracts and (ii) the
A Behavioral Account of the Labor Market: The Role of Fairness Concerns
In this paper, we argue that important labor market phenomena can be better understood if one takes (a) the inherent incompleteness and relational nature of most employment contracts and (b) the
On Reputation: A Microfoundation of Contract Enforcement and Price Rigidity
We study the impact of reputational incentives in markets characterized by moral hazard problems. Social preferences have been shown to enhance contract enforcement in these markets, while at the
On Reputation: A Microfoundation of Contract Enforcement and Price Rigidity
We study the impact of reputational incentives in markets characterized by moral hazard problems. Social preferences have been shown to enhance contract enforcement in these markets, while at the
SEASONAL MIGRATION WITH GIFT-GIVING AND GIFT-EXCHANGES : LESSONS FROM A FIELD STUDY OF RURAL-URBAN MIGRATION IN BANGLADESH
In vast markets of developing economies, especially in South Asia, both seasonal rural migrants and threatened urban workers constitute a bulk of the new class of working poor and are truly marginal
The Currency of Reciprocity - Gift-Exchange in the Workplace
What determines reciprocity in employment relations? We conducted a controlled field experiment to measure the extent to which monetary and nonmonetary gifts affect workers' performance. We find that
Risk aversion and the impact of health insurance on household vulnerability : New evidence from rural Vietnam
This study provides new evidence on the impact of health insurance coverage on household vulnerability using Vietnam Access to Resources Household Surveys (VARHS) during 2010-2012. The outcomes of
Awards at Work
Social incentives like employee awards are widespread in the corporate sector and may be important instruments for solving agency problems. To date, we have little understanding of their effect on
Working for Nothing? The Effect of Non-material Awards on Employee Performance∗
We present the results of an empirical study assessing the impact of nonmaterial awards on work performance. Subjects in our field experiment were hired by an international non-governmental
Revisiting loss aversion: Evidence from professional tennis
We provide further evidence for the existence of loss aversion in a high-stakes context: professional tennis. Our contribution to the literature is threefold: (1) We provide a theoretical framework
...
1
2
3
...

References

SHOWING 1-10 OF 240 REFERENCES
Do Workers Work More If Wages are High? Evidence from a Randomized Field Experiment
Most previous studies on intertemporal labor supply found very small or insignificant substitution effects. It is not clear, however, whether these results are due to institutional constraints on
The interaction of labor markets and inflation: analysis of micro data from the International Wage Flexibility Project
Inflation can “grease” the wheels of economic adjustment in the labor market by relieving the constraint imposed by downward nominal wage rigidity, but not if there is also substantial downward real
A Theory of Wage Dynamics
A dynamic, equilibrium model of long term (implicit) labour contracts under incomplete but symmetric information is developed. Workers are assumed to be risk averse and of unknown ability or
Evaluating the Economic Significance of Downward Nominal Wage Rigidity
This paper formalizes and assesses empirically the implications of widely observed evidence for downward nominal wage rigidity (DNWR). It shows how a model of DNWR informed by diverse evidence for
Fair Wages in a New Keynesian Model of the Business Cycle
We build a New Keynesian model of the business cycle with sticky prices and real wage rigidities motivated by efficiency wages of the gift exchange variety. Compared to a standard sticky price model,
Near-Rational Wage and Price Setting and the Long-Run Phillips Curve
OVER THIRTY YEARS ago, in his presidential address to the American Economic Association, Milton Friedman asserted that in the long run the Phillips curve was vertical at a natural rate of
Multitask Principal–Agent Analyses: Incentive Contracts, Asset Ownership, and Job Design
In the standard economic treatment of the principal-agent problem, compensation systems serve the dual function of allocating risks and rewarding productive work. A tension between these two
Evidence of Nominal Wage Stickiness from Microdata
For much of this century, sticky nominal wages have been considered a key reason that nominal shocks to the economy may have real effects. Historical explanations of sticky nominal wages often rely
Measuring the Cyclicality of Real Wages: How Important is Aggregation Across Industries?
There is a growing consensus among economists that real wages in the postwar U.S. have been moderately to strongly procyclical, particularly in panel data on workers. From the point of view of hiring
Why wages don't fall during a recession
A deep question in economics is why wages and salaries don't fall during recessions. this is not true of other prices, which adjust relatively quickly to reflect changes in demand and supply.
...
1
2
3
4
5
...