Do Emotions Improve Labor Market Outcomes?
Published By: IZA on eSS | Published Date: December, 06 , 2005Traditionally, 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(1104) | Download (689)