On the theory of equalizing differences; Increasing abundances of types of workers may increase their earnings

Cartwright, Edward and Wooders, Myrna (2001) On the theory of equalizing differences; Increasing abundances of types of workers may increase their earnings. Economics Bulletin, 4 (4). pp. 1-10. ISSN 1545-2921. (The full text of this publication is not available from this repository)

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Abstract

The theory of equalising differences recognises that wage differentials may be required to equalise the attractiveness of alternative occupations. We examine this theory using the Conley/Wooders 'crowding types' model. The crowding types model distinguishes between the tastes of a player and his crowding type, those attributes of the player that directly effect the well-being of other players in the same club - a player's skill, productivity or personality are examples. A club can be interpreted as firm in which the job attributes are the club goods; thus, the crowding types model, with its distinction between tastes and crowding types, provides a natural environment in which to study equalising differences. In contrast to results for earlier models, we demonstrate that even when small groups of players are strictly effective in a strong sense, an increase in the abundance of players of one crowding type can increase the core payoffs to players of that crowding type.

Item Type: Article
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculties > Social Sciences > School of Economics
Depositing User: Edward Cartwright
Date Deposited: 29 Aug 2008 18:48
Last Modified: 14 May 2014 12:41
Resource URI: http://kar.kent.ac.uk/id/eprint/3822 (The current URI for this page, for reference purposes)
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