nep-ltv New Economics Papers
on Unemployment, Inequality and Poverty
Issue of 2009‒06‒10
three papers chosen by
Maximo Rossi
University of the Republic

  1. What Is an Award Worth? An Econometric Assessment of the Impact of Awards on Employee Performance By Susanne Neckermann; Reto Cueni; Bruno S. Frey
  2. Inequality Decompositions ?A Reconciliation By Frank A. Cowell; Carlo V. Fiorio
  3. Aspirations, Segregation and Occupational Choice By Dilip Mookherjee; Stefan Napel; Debraj Ray

  1. By: Susanne Neckermann; Reto Cueni; Bruno S. Frey
    Abstract: Behavioral economics documents the importance of status and self-image concerns in the workplace, but is largely silent about how to instrumentalize them to induce effort. Awards|widespread in the corporate sector and elsewhere are motivators that derive their value from such social concerns. Panel data from the call center of a large international bank allow us to estimate the impact of receiving an award on e ort. The performance of winners proves to be signi cantly higher than that of comparable nonrecipients after the award has been presented. This increase in work e ort is sizeable, robust, and not driven by reverse causation.
    Keywords: Awards; Motivation; Non-monetary Compensation; Event-Study; Incentives
    JEL: C23 J33 M52
    Date: 2009–05
  2. By: Frank A. Cowell (London School of Economics and STICERD); Carlo V. Fiorio (University of Milan and Econpubblica)
    Abstract: We show how classic source-decomposition and subgroup-decomposition methods can be reconciled with regression methodology used in the recent literature. We also highlight some pitfalls that arise from uncritical use of the regression approach. The LIS database is used to compare the approaches using an analysis of the changing contributions to inequality in the United States and Finland.
    Keywords: Inequality, decomposition.
    JEL: D63
    Date: 2009
  3. By: Dilip Mookherjee (Boston University); Stefan Napel (University of Bayreuth); Debraj Ray (New York University)
    Abstract: This paper examines steady states of an overlapping generations economy with a given distribution of household locations over a one-dimensional interval. Parents decide whether or not to educate their children. Such decisions are aected by location: parental aspirations depend on the earnings of their neighbors. At the same time, economy-wide wages endogenously adjust to bring factor supplies into line with demand. The model therefore combines local social interaction with global market interaction. The paper studies steadystate configurations of skill acquisition, both with and without segregation, and studies the macroeconomic and welfare effects of segregation on aggregate economic outcomes.
    Date: 2008–07

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