Can workers' increased pessimism about the labor market conditions raise unemployment?

Autor(es)

da Silveira, Jaylson Jair ^[1] ; Lima, Gilberto Tadeu ^[2]

Afiliação do(s) autor(es)

^[1] Univ Fed Santa Catarina, Dept Econ & Int Relat, Florianopolis, SC - Brazil

^[2] Univ Sao Paulo, Dept Econ, Sao Paulo - Brazil

• Tipo de documento: Artigo Científico
• Fonte: INTERNATIONAL REVIEW OF ECONOMICS & FINANCE; v. 72, p. 125-134, MAR 2021.
• Citações Web of Science: 0

Resumo

As there is extensive survey evidence on persistent heterogeneity in unemployment expectations across workers, it is a reasonable premise that the expected cost of job loss and the resulting provision of effort on the job are similarly heterogeneous across workers. Based on such a premise, the paper shows that the significant positive correlation between pessimistic unemployment expectations and actual unemployment which is consistently observed with household survey data can arise in a novel heterogeneous expectations-augmented efficiency wage modelling of the labor market through a composition effect. (AU)

• Processo FAPESP: 19/03148-5 - Utilização da capacidade produtiva, crescimento econômico e distribuição funcional da renda na presença de heterogeneidades comportamentais e de padrões de interação entre agentes
• Beneficiário: Gilberto Tadeu Lima
• Modalidade de apoio: Auxílio à Pesquisa - Pesquisador Visitante - Brasil