The Desire for Impact
CESifo, Munich, 2005
CESifo Working Paper No. 1535
![](https://cesifo.org/DocImg/cesifo1_wp1535.jpg?c=1689236958)
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.
Labour Markets