Beliefs are a crucial element in the labor market, as workers need to make predictions about how good their market is. We show that workers think of themselves as highly desirable, along two dimensions. First they think they will get more job offers than they actually get. Second, they overestimate the salary attached to such offers. We show that this has profound consequences for the labor market through the rejection of marginal offers, which dampens the climb of the job ladder.
@unpublished{optimism,title={Misperceptions in the Labor Market},year={2023},month=may,author={Orlandi, Jacopo and Robiglio, Pierre}}
