Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/168095
Authors: 
Goerke, Laszlo
Neugart, Michael
Year of Publication: 
2017
Series/Report no.: 
Beiträge zur Jahrestagung des Vereins für Socialpolitik 2017: Alternative Geld- und Finanzarchitekturen - Session: Labor Contracts and Markets I E05-V1
Abstract: 
Social comparisons matter for workers' valuation of their wage. The consequences of so- cial comparisons in imperfectly competitive markets are less well understood. We analyze an oligopsonistic model of the labor market where workers derive (dis-) utility from comparing their own wage with wages paid at other firms. As social comparisons become more preva- lent all wages rise, the wage distribution becomes more equal, and employment shifts to high productivity firms. Overall welfare increases.
JEL: 
D62
J22
J42
Document Type: 
Conference Paper

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