Identity —people’s conception of who they are and of who they choose to be —may be the most critical factor affecting their economic lives, in that it determines their well-being. Explains why people facing the same economic circumstances make different choices, and reconsiders work incentives. If employees identify with the firm, they will advance its goals in the absence of monetary incentives. Also shows why incentives like stock options do and do not work, why some schools succeed and others don’t, and why some cities and towns don’t invest in their futures.
|(WORK * IDENTITY AND ECONOMICS)