Santos-Pinto, Luis - Départment d'économétrie et d'économie politique … - 2010
/or underconfident workers in the labor market compresses wages. I show that workers' biased beliefs reduce welfare when workers are … sufficiently different in terms of productivity and cost of education. Finally, I show that if the fraction of overconfident … workers is relatively low and workers are sufficiently similar in terms of productivity and cost of education, then biased …