Social comparisons in oligopsony

Laszlo Goerke and Michael Neugart

VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking from Verein für Socialpolitik / German Economic Association

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-codes: D62 J22 J42 (search for similar items in EconPapers)
Date: 2017
New Economics Papers: this item is included in nep-cta
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Citations: View citations in EconPapers (7)

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Related works:
Journal Article: Social comparisons in oligopsony (2017)
Working Paper: Social Comparisons in Oligopsony (2017)
Working Paper: Social comparisions in oligopsony (2017)
Working Paper: Social comparisons in Oligopsony (2017)
Working Paper: Social Comparisons in Oligopsony (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:vfsc17:168095

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