Reference Dependence and Labor-Market Fluctuations

Ran Spiegler () and Kfir Eliaz

No 8997, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: We incorporate reference-dependent preferences into a search-and-matching model of the labor market, in which firms have all the bargaining power and productivity follows an AR(1) process. Motivated by Akerlof (1982) and Bewley (1999), we assume that existing workers are willing to exert unobserved,

Keywords: Negative-reciprocity; Reference-dependence; Search and matching; Shimer puzzle; Social preferences; Wage rigidity (search for similar items in EconPapers)
JEL-codes: C72 D03 E24 E32 J64 (search for similar items in EconPapers)
Date: 2012-05
New Economics Papers: this item is included in nep-dge and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Related works:
Journal Article: Reference Dependence and Labor Market Fluctuations (2014)
Chapter: Reference Dependence and Labor Market Fluctuations (2013)
Working Paper: Reference-Dependence and Labor-Market Fluctuations (2013)
Working Paper: Reference Dependence and Labor-Market Fluctuations (2012)
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