CEP/STICERD Applications Seminars
Worker Beliefs About Outside Options
Benjamin Schoefer (Harvard), joint with Simon Jäger, Christopher Roth, Nina Roussille
Monday 28 February 2022 16:00 - 17:30
Many of our seminars and public events this year will continue as in person or as hybrid (online and in person) events. Please check our website listings and Twitter feed @STICERD_LSE for updates.
Unless otherwise specified, in-person seminars are open to the public.
Those unable to join the seminars in-person are welcome to participate via zoom if the event is hybrid.
About this event
Workers wrongly anchor their beliefs about outside options on their current wage. In particular, low-paid workers underestimate wages elsewhere. We document this anchoring bias by eliciting workers’ beliefs in a representative survey in Germany and comparing them to measures of actual outside options in linked administrative labor market data. In an equilibrium model, such anchoring can give rise to monopsony and labor market segmentation. In line with the model, misperceptions are particularly pronounced among workers in low-wage firms. If workers had correct beliefs, at least 10% of jobs, concentrated in low-wage firms, would not be viable at current wages.
Applications (Applied Micro) Seminars are held on Mondays in term time at 12:00-13:30 in SAL 3.05 in person.
Seminar organiser: Jörn-Steffen Pischke
For further information please contact Lubala Chibwe: firstname.lastname@example.org.
Please use this link to subscribe or unsubscribe to our mailing list (applications).