Labor market search effort with reference-dependent preferences

Mette Trier Damgaard

Economics Letters, 2017, vol. 156, issue C, 99-101

Abstract: We incorporate forward-looking reference-dependent preferences into a simple job search framework and show that people with strong aversion to losses may choose not to search for a job despite economic incentives to do so. We also discuss the policy implications.

Keywords: Job search; Loss aversion; Search effort; Stochastic reference point (search for similar items in EconPapers)
JEL-codes: D83 J64 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:156:y:2017:i:c:p:99-101

DOI: 10.1016/j.econlet.2017.04.016

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