Psychologists have consistently documented people’s tendency to be overconfident about their own ability. We interpret workers’ confidence in their own skills as their morale, and investigate the implication of worker overconfidence on the firm’s optimal wage-setting policies. In our model, a wage contract both provides incentives and conveys to the worker the firm’s opinion about her ability, ...

Textbook analysis tells us that in a competitive labor market, the introduction of a minimum wage above the competitive equilibrium wage will cause unemployment. This paper makes two contributions to the basic theory of the minimum wage. First, we analyze the effects of a higher minimum wage in terms of poverty rather than in terms of unemployment. Second, we extend the standard textbook model ...

Wage dispersion is generated in a sequential search environment through heterogeneity in firm productivity along with an individual wage-effort tradeoff. For a given degree of TFP dispersion, the framework can generate any amount of wage dispersion. Calibrated to generate realistic gains from trade, it is able to generate the kind of wage dispersion observed in data. JEL codes: E24, J64

Wage inequality in the United States has risen dramatically over the past few decades, prompting scholars to develop a number of theoretical accounts for the upward trend. This study argues that large firms have been a prominent labor-market institution that mitigates inequality. By compensating their lowand middle-wage employees with a greater premium than their higher-wage counterparts, large...

This study analyzes the trade-off relationship between layoffs and wage cuts. If the introduction of a performance-based payment system stimulates workers’ pecuniarymotivated minds, their morale can be damaged more severely by wage cuts than prior to the introduction thereof. Utilizing this idea, we demonstrate theoretically that the more heavily wages are based on performance, the more firms, ...

according to the prevailing view in the islamic jurisprudence since breastfeeding is not mother's duty, she is entitled to demand wage from her husband for breastfeeding her child. in this article, the authors intend to prove, through reviewing the evidences of this view and the alternative one, that there is a meaningful relationship between the following phrases: “if they breastfeed for you, ...

background : occupational stress is a psychosocial dimension of occupational health concept on social determinants of health, especially, job & environmental condition. recently, staff network of different government universities of thailand have called higher education commission, and ministry of education, thailand to resolve the issue of gov-ernment education policy (e.g. wage inequity, poor...

A proper understanding of the patterns, sources and implications of wage and labour cost dynamics is an essential requirement for the effective conduct of monetary policy. Wage costs are an important determinant of prices. The fi ndings of the Infl ation Persistence Network (IPN), a Eurosystem research network analysing the features and determinants of price setting in the euro area, suggest th...