Earnings profiles and money illusion
|Author:||Mgr. Doina Todica|
|Year:||2010 - summer|
|Leaders:|| doc. PhDr. Julie Chytilová Ph.D.
|Work type:|| Masters
|Awards and prizes:|
|Abstract:||The main goal of the thesis is to test the existence of money illusion among the working population of the Republic of Moldova. The author of the thesis conducted a survey in March 2010, and results suggest that under the presence of rather high inflation, and a larger increase in nominal wage relative to real wage, Moldovan workers are prone to money illusion, this influences their earning profiles over time and across economic sectors; more than that this finding is important in explaining why workers change the economic sector, or why some sectors of the economy are characterized by grater fluctuations than other. To the author’s best knowledge, this represents the first time a study of this kind is conducted in the Republic of Moldova.|