‘Choose To Be Optimistic, It Feels Better?’ Evidence Of Optimism On Employment Utility
Published online on November 13, 2016
Abstract
Individual's expected wages exceed predicted market wages. Rational expectations imply the divergence should be zero. If individuals over‐estimate the return from their attributes and view the paid‐employment return distribution too favourably, then conditional on market wages, subsequent employment utility is likely to be low through disappointment.