nep-ltv New Economics Papers
on Unemployment, Inequality and Poverty
Issue of 2008‒05‒10
three papers chosen by
Maximo Rossi
University of the Republic

  1. Hyperbolic Discounting and the Phillips Curve By Graham, Liam; Snower, Dennis J.
  2. Changes in the Concept of and Approaches to Work Satisfaction By Kaarel Haav
  3. The Power of Positional Concerns By Benno Torgler; Sascha L. Schmidt; Bruno S. Frey

  1. By: Graham, Liam (University College London); Snower, Dennis J. (Kiel Institute for the World Economy)
    Abstract: Using a standard dynamic general equilibrium model, we show that the interaction of staggered nominal contracts with hyperbolic discounting leads to inflation having significant long-run effects on real variables.
    Keywords: inflation, unemployment, Phillips curve, nominal inertia, monetary policy, dynamic general equilibrium
    JEL: E20 E40 E50
    Date: 2008–04
  2. By: Kaarel Haav (International University Audentes)
    Abstract: TThe paper reviews the main changes in the concept of work satisfaction in organization theory and management practice in the last century. It particularly focuses on developments in Estonia. The author contrasts dualist and integrated concepts of employees and organizations. Most of the empirical studies focus on hedonistic individuals and ignore the social construction of identities (Shamir 1991). In such psychological framework, the dilemmas of attitude-behaviour and satisfaction-performance can not be solved. Although the role of integrated approaches is increasing (especially in theories on organizational culture and identity), the psychological paradigm still dominates, especially in the practice of traditional hierarchical organizations. The paper describes a theoretical and an empirical typology of work satisfaction, based on social (organizational) and psychological (motivational) dimensions. They were developed in Estonia in the 1970s. These typologies reveal the role of satisfaction in regulation of work activities. The author relies on social and psychological dimensions of leadership and designs a new typology of leadership styles.
    Keywords: work motivation and activity, typology of satisfaction, psychological and sociological approaches, work and organizational design, employee participation
    JEL: M14
    Date: 2008
  3. By: Benno Torgler; Sascha L. Schmidt; Bruno S. Frey
    Abstract: People care a great deal about their relative economic position and not solely about their absolute economic position. However, behavioral evidence is rare. This paper provides evidence on how the relative income position affects professional sports performances. Our analysis suggests that if a player’s salary is below the average and this difference increases, his performance worsens. Moreover, the larger the income differences, the stronger positional concern effects are observable. We also find that the more the players are integrated, the more evident a relative income effect is. Finally, we find that positional effects are stronger among high performing teams.
    Keywords: Relative income, positional concerns, organizational justice, envy, social comparison, relative derivation, equity theory, prospect theory, loss aversion, performance
    JEL: D00 D60 L83
    Date: 2008–04

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