The Efficiency Wage Under Long-run Employment
The purpose of this paper is to analyze the determination of wage rates in a setting where the health capital of labor accumulates over time. Our conclusions are (1) the efficiency wage in a dynamic framework exceeds the static wage rate and (2) there is a possibility of multiple steady state equilibria. We also conduct some comparative static exercises with respect to some key parameters.
Year of publication: |
1996-07
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Authors: | Banerji, Sanjay ; Gupta, Manas Ranjan |
Institutions: | Institute for Economic Development, Department of Economics |
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