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‘CHOOSE TO BE OPTIMISTIC, IT FEELS BETTER?’ EVIDENCE OF OPTIMISM ON EMPLOYMENT UTILITY
Author(s) -
Dawson Chris,
Hinks Tim,
Veliziotis Michail
Publication year - 2017
Publication title -
bulletin of economic research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.227
H-Index - 29
eISSN - 1467-8586
pISSN - 0307-3378
DOI - 10.1111/boer.12107
Subject(s) - disappointment , economics , optimism , divergence (linguistics) , labour economics , distribution (mathematics) , rational expectations , microeconomics , financial economics , econometrics , psychology , social psychology , mathematical analysis , linguistics , philosophy , mathematics
Individual's expected wages exceed predicted market wages. Rational expectations imply the divergence should be zero. If individuals over‐estimate the return from their attributes and view the paid‐employment return distribution too favourably, then conditional on market wages, subsequent employment utility is likely to be low through disappointment.