Do Emotions Improve Labor Market Outcomes?

Published By: IZA on eSS | Published Date: December, 06 , 2005

Traditionally, models of economic decision-making assume that individuals are rational and emotionless. This chapter argues that the neglect of emotion in economic models explains their inability to predict important aspects of the labor market. We focus on one example: the scarcity of nominal wage cuts. [IZA Discussion Paper No. 1895]

Author(s): Lorenz Goette, David Huffman | Posted on: Aug 06, 2010 | Views(1172) | Download (689)


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