Jäger, Simon; Roth, Christopher; Roussille, Nina; … - 2021
Workers wrongly anchor their beliefs about outside options on their current wage. In particular, low-paid workers … underestimate wages elsewhere. We document this anchoring bias by eliciting workers' beliefs in a representative survey in Germany … particularly pronounced among workers in low-wage firms. If workers had correct beliefs, at least 10% of jobs, concentrated in low …
