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On the economic architecture of the workplace: Repercussions of social comparisons among heterogeneous workers

Stark, Oded; Hyll, Walter - Volkswirtschaftliche Fakultät, … - 2011

We analyze the impact on a firm’s profits and optimal wage rates, and on the distribution of workers’ earnings, when … workers compare their earnings with those of co-workers. We consider a low-productivity worker who receives lower wage … deprivation is to increase the optimal level of effort. Consequently, the firm’s profits are higher, its wage rates remain …

Persistent link: https://www.econbiz.de/10008855240

Migration for degrading work as an escape from humiliation

Stark, Oded; Fan, C. Simon - Volkswirtschaftliche Fakultät, … - 2010

This paper develops a model of voluntary migration into degrading work. The essence of the model is a tension between two “bads:” that which arises from being relatively deprived at home, and that which arises from engaging in humiliating work away from home. Balancing between these two...

Persistent link: https://www.econbiz.de/10008855250

Endogenous Selection of Comparison Groups, Human Capital Formation, and Tax Policy

Stark, Oded; Hyll, Walter - Volkswirtschaftliche Fakultät, … - 2010

This paper considers a setting in which the acquisition of human capital entails a change of location in social space that causes individuals to revise their comparison groups. Skill levels are viewed as occupational groups, and moving up the skill ladder by acquiring additional human capital,...

Persistent link: https://www.econbiz.de/10008855796

Casting the naturalization of asylum seekers as an economic problem

Stark, Oded - Volkswirtschaftliche Fakultät, … - 2010

The asylum seekers who choose the level of investment in the host-country-specific human capital, and the government of the host country that chooses the probability of naturalization are modeled as optimizing economic agents in a setting not of their choosing.

Persistent link: https://www.econbiz.de/10008855809

The new economics of the brain drain

Stark, Oded - Volkswirtschaftliche Fakultät, … - 2005

For nearly four decades now, the conventional wisdom has been that the migration of human capital (skilled workers) from a developing country to a developed country is detrimental to the developing country. However, this perception need not hold. A well designed migration policy can result in a...

Persistent link: https://www.econbiz.de/10009021969

A social proximity explanation of the reluctance to assimilate

Fan, C. Simon; Stark, Oded - Volkswirtschaftliche Fakultät, … - 2007

Quite often, migrants appear to exert little effort to absorb the mainstream culture and to learn the language of their host society, even though the economic returns (increased productivity and enhanced earnings) to assimilation are high. We show that when interpersonal comparisons affect...

Persistent link: https://www.econbiz.de/10009021976