TY - JOUR PY - 2010// TI - The causes and economic consequences of envy JO - SERIEs A1 - Cabrales, Antonio SP - 371 EP - 386 VL - 1 IS - 4 N2 - I first give an explanation for invidious preferences based on the (evolutionary) competition for resources. Then I show that these preferences have wide ranging and empirically relevant effects on labor markets, such as: workplace skill segregation, gradual promotions, wage increases that have no relation with productivity and downward wage flexibility. I suggest that labor and human resource economics can benefit from including envy into the standard set of factors considered in their theoretical and empirical models.

LA - SN - 1869-4187 UR - http://dx.doi.org/10.1007/s13209-010-0028-1 ID - ref1 ER -