The Desire for Impact

Tinbergen Institute Discussion Paper No. TI 2004-115/1

CESifo Working Paper Series No. 1535

27 Pages Posted: 1 Nov 2004

See all articles by Robert Dur

Robert Dur

Erasmus University Rotterdam (EUR) - Department of Economics; Tinbergen Institute; CESifo (Center for Economic Studies and Ifo Institute); IZA Institute of Labor Economics

Amihai Glazer

University of California, Irvine - Department of Economics

Date Written: September 2005

Abstract

This paper explores the meaning and implications of the desire by workers for impact. We find that this impact motive can make firms in a competitive labor market act as monopsonists, lead workers with the same characteristics but at different firms to earn different wages, may alleviate the hold-up problem in firm-specific investment, can make it profitable for an employer to give workers autonomy in effort or task choice, and can propagate shocks to unemployment.

Keywords: Impact, monopsonistic behavior, wage differentials, hold-up problem, contracts, autonomy

JEL Classification: J3, J4, M5

Suggested Citation

Dur, Robert and Glazer, Amihai, The Desire for Impact (September 2005). ; CESifo Working Paper Series No. 1535. Available at SSRN: https://ssrn.com/abstract=610962

Robert Dur (Contact Author)

Erasmus University Rotterdam (EUR) - Department of Economics ( email )

FEW / H 8-15
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+31-10-4082159 (Phone)
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HOME PAGE: http://people.few.eur.nl/dur

Tinbergen Institute

Amsterdam/Rotterdam
Netherlands

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Amihai Glazer

University of California, Irvine - Department of Economics ( email )

3151 Social Science Plaza
Irvine, CA 92697-5100
United States
949-854-6563 (Phone)
949-824-2182 (Fax)

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