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Unemployment Stigma and Multiple Labour Market Equilibria: A Social‐Psychological Interpretation of Hysteresis
Author(s) -
Sessions John G.
Publication year - 1994
Publication title -
labour
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.403
H-Index - 34
eISSN - 1467-9914
pISSN - 1121-7081
DOI - 10.1111/j.1467-9914.1994.tb00168.x
Subject(s) - unemployment , stigma (botany) , economics , hysteresis , interpretation (philosophy) , wage , constraint (computer aided design) , efficiency wage , involuntary unemployment , labour economics , social stigma , microeconomics , psychology , macroeconomics , mathematics , medicine , computer science , physics , geometry , family medicine , quantum mechanics , human immunodeficiency virus (hiv) , psychiatry , programming language
This paper supplements a simple one period non‐shirking efficiency wage model with behavioural assumptions drawn from the social‐psychological literature. A model of social interaction is developed in which the status associated with various labour market options yields implications for the shape of the non‐shirking constraint and, thereby, for the number and type of labour market equilibria. The significance of such a finding for the existence of unemployment hysteresis is explored.