Do Workers Prefer Increasing Wage Profiles?

Loewenstein, George; Sicherman, Nachum

doi:10.1086/298259

Cited by 344 publications

(316 citation statements)

References 29 publications

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“…---- [table 3 about here]----Some studies have found evidence of negative discounting (e.g., Loewenstein and Sicherman (1991)), but we find little evidence of this sort. Some individuals do shift choices opposite to the direction that a positive discount rate would imply, but they are a minority.…”

Section: Methodsmentioning

confidence: 53%

“…Experimental studies, such as those by Ben-Zion, Rapoport, and Yagil (1989), Ainslie (1975), Loewenstein and Sicherman (1991), Thaler (1981), Gigliotti and Sopher (1997a), and many of the contributions in Loewenstein and Elster (1992) illustrate behavior that is inconsistent with present value maximization. This paper makes three further contributions to the literature about rational intertemporal choice, with special reference to the theory that individuals will choose among streams of income by selecting the stream with the highest present value.…”

Section: Introductionmentioning

confidence: 99%

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Analysis of Intertemporal Choice: A New Framework and Experimental Results

Gigliotti¹,

Sopher²

2003

Theory and Decision

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may AbstractThis paper reports the results of a series of experiments examining intertemporal choice. The paper makes three contributions: First, it presents a new analytic device, the intertemporal choice triangle, which is analogous to the Marschak-Machina choice triangle used in the analysis of choice under risk. Second, we have developed a new experimental design based on the intertemporal choice triangle which allows subjects greater flexibility in making choices, and which allows the researcher to make more subtle inferences, than are possible with designs previously employed. Subjects are able to create their most-preferred outcome in each choice situation by choosing a constrained linear combination of two extreme options. Third, our results show that while subjects do not typically maximize present value, they are significantly influenced by present value considerations. We refer to this finding as present value-seeking behavior. We find only weak evidence of several previously documented intertemporal choice anomalies in our framework.

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Section: Methodsmentioning

confidence: 53%

Section: Introductionmentioning

confidence: 99%

Analysis of Intertemporal Choice: A New Framework and Experimental Results

Gigliotti¹,

Sopher²

2003

Theory and Decision

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“…22 Even these gross numbers are quite striking. The incidence rate for all training is slightly higher for men (37% versus 34%), but the disparity in the incidence rate for company provided is bigger (31% for men versus 26% for women).…”

Section: Training Incidence and Intensitymentioning

confidence: 99%

Gender gap in wage returns to job tenure and experience

2008

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We present empirical evidence on gender differences in wage returns on firmspecific experience (job tenure) and general experience. We find that overall returns on an extra year of labor market experience are lower for women than men. However, a decomposition analysis shows that the return on job tenure is substantially lower for women than it is for men, and that the return on general experience is higher for women than it is for men. These findings are consistent with the hypothesis that despite their growing attachment to the labor market, women are less likely to invest in job-specific skills or to self-select into jobs with backloaded compensation because women are more prone to job separations than their male counterparts. The lower estimated returns on tenure for women could also be due to employer discrimination in hiring, and the provision of training and promotion opportunities within firms.

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“…Due to this rule firms cannot simply replace high wage more senior workers for low wage young workers. Finally, the age related payproductivity gap may be due to workers preferring increasing wage profiles over flat or decreasing wage profiles of greater monetary value (Loewenstein and Sicherman 1991).…”

Section: Pay-productivity Gap: Theorymentioning

confidence: 99%

Will You Still Need Me: When I’m 64?

Ours

2009

De Economist

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SummaryFor various reasons the relationship between age and productivity is a matter of policy concern. I present new empirical research showing how productivity is affected by age. I study age effects at the individual level by analyzing data on running and publishing in economic journals. Furthermore I present empirical evidence at the firm level on the relationship between age, wage and productivity. In particular I address the potential wage-productivity gap that might occur at higher ages. I conclude that the productivity of older workers indeed decreases with their age. Nevertheless, the decline is limited. Furthermore, I find no evidence of a pay-productivity gap at higher ages.

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Do Workers Prefer Increasing Wage Profiles?

Cited by 344 publications

References 29 publications

Analysis of Intertemporal Choice: A New Framework and Experimental Results

Analysis of Intertemporal Choice: A New Framework and Experimental Results

Gender gap in wage returns to job tenure and experience

Will You Still Need Me: When I’m 64?

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