This paper explores the meaning and implications of the desire by workers for impact. We find that this impact motive can make firms in a competitive labor market act as monopsonists, lead workers with the same characteristics but at different firms to earn different wages, may alleviate the hold-up problem in firm-specific investment, can make it profitable for an employer to give workers autonomy in effort or task choice, and can propagate shocks to unemployment.

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hdl.handle.net/1765/6612
Tinbergen Institute Discussion Paper Series
Tinbergen Institute

Dur, R. (2004). The Desire for Impact (No. TI 04-115/1). Tinbergen Institute Discussion Paper Series. Retrieved from http://hdl.handle.net/1765/6612