Redistributing opportunities in a job search model: the role of self-confidence and social norms

In this paper we explore the effects of redistributive policies in a job search model where different degrees of self-confidence generate different arrival rates of new jobs. We find that the job search model is an useful framework to address behavioral concerns about personal motivation. We find that self-confidence and effort are complements in the performance of search activity. Moreover rewards, i.e. moving to better jobs, are negative reinforces for self-confidence if the distribution of wages is stationary. We analyze the effect of redistributing policies of opportunities that aim to compress the distribution of the job arrival rates. Finally the presence of social norms generates multiple equilibria.