Present-biased preferences, self-awareness and shirking

Gilpatric, Scott M.

doi:10.1016/j.jebo.2007.05.004

“…A number of factors are relevant for the design of optimal compensation policy in the face of workers' self-control problems (see Gilpatric 2008;Kaur et al 2010;Jain 2012). First is the degree of workers' present-bias; the greater the present-bias, the sharper is the required trade-off between compensation and effort, and the more costly it is for firms to motivate workers.…”

Section: Optimal Incentive Contactsmentioning

confidence: 99%

“…Instead, policy design must have in mind some notion of a representative agent while remaining cognizant of the diversity in individual preferences, and therefore behavior. In particular, the proportion of potential workers with time-consistent versus present-biased preferences will drive firms' optimal compensation policy (e.g., Gilpatric 2008), while the distribution of preferences among the unemployed shapes the design of optimal social assistance programs (e.g., Paserman 2008;Spinnewijn 2009). Resolving these issues is particularly challenging when workers' preferences are not easily observed.…”

Section: Labor Market Policymentioning

confidence: 99%

Locus of Control and the Labor Market

Cobb‐Clark

¹

2014

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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 reviews the role of locus of control in the labor market. I begin with a discussion of the conceptual origins of locus of control, including its relationship to related concepts such as self-efficacy, motivation, and self-control. The relationship between locus of control and labor market success is then summarized. In doing so, I pay careful attention to what we know about three potential mechanisms -human capital investments, hiring decisions, and optimal incentive contracts -through which locus of control might operate. Finally, the broader implications of these relationships for public policy and future research are discussed.

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“…The reason is that higher task costs make the agent more prone to procrastinate, and the principal needs to increase punishments to avoid inefficient procrastination. Gilpatric (2008) also focuses on a contracting problem with time-inconsistent agents assuming that profit is fully determined by the effort, so effort is effectively observable. However, the low effort level can be severely punished or not, and both cases are considered.…”

Section: Strategic Interactionmentioning

confidence: 99%

An Extended Survey on Time-Inconsistency and Its Applications

Yılmaz¹

2018

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In this study, we provide an extended literature review on preferences with present bias, more specifically with quasi-hyperbolic discounting which leads to time-inconsistent behavior. We review current studies that focus on the implications of time-inconsistent preferences on various well-known economic models and environments, including both models of individual decision making and models that have strategic interactions. We also discuss the part of the literature that focuses on measuring the discounting, whether it is exponential or hyperbolic. We also provide possible research directions which have not been fully explored yet in the literature.

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“…Workers' self-control issues have fundamental implications for the efficient design of compensation policies (Gilpatric 2008, Kaur, Kremer, and Mullainathan 2010, Jain 2012, Kaur, Kremer, and Mullainathan 2015. Ideally, public programs like the unemployment benefits system would also provide work incentives that address not only moral hazard, but also workers'…”

Section: Self-controlmentioning

confidence: 99%

Biology and Gender in the Labor Market

Cobb‐Clark

¹

2017

The Oxford Handbook of Women and the Economy

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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. The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. Terms of use: Documents inIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. Can biology help us to better understand gender differences in labor market behavior and outcomes? This chapter reviews the emerging literature which sheds light on this question, considering research in four broad areas: i) behavioral endocrinology; ii) human genetics; iii) neuroeconomics; and iv) sensory functioning and time-space perceptions.JEL Classification: J31, A12, Z0

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Present-biased preferences, self-awareness and shirking

Cited by 44 publications

References 15 publications

Locus of Control and the Labor Market

Locus of Control and the Labor Market

An Extended Survey on Time-Inconsistency and Its Applications

Biology and Gender in the Labor Market

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