In the most widely analyzed type of efficiency wage model of involuntary unemployment, firms pay wages in excess of … equilibrium unemployment act as a worker discipline device. This paper concerns what is usually considered the most important … involuntary unemployment. Explicit upfront bonds are only quite rarely observed. A more subtle form of the bonding critique argues …

similarity of the pattern of segmentation across 66 different countries. The paper goes on to consider how unemployment might be … understood in a labor market segmentation framework. Existing models of unemployment in a dual labor market suggest that … unemployment should be concentrated among those who are ultimately employed in high wage jobs. In fact, unemployment seems to be …

This paper surveys recent developments in the literature on efficiency wage theories of unemployment. Efficiency wage … models have in common the property that in equilibrium firms may find it profitable to pay wages in excess of market clearing …. High wages can help reduce turnover, elicit worker effort, prevent worker collective action, and attract higher quality …

unemployment, Keynes emphasis on relative wages has not been reflected in most contemporary discussions. This short paper suggests …While modern economic theorists have produced a variety of explanations for the failure of wages to fall in the face of … available apparatus for understanding actual unemployment and its fluctuations. Such theories are very closely related to the …

supportive of the relevance of these theories. Ford's decision to dramatically increase wages is most plausibly portrayed as the …

advantage. Under these asymmetries, multinationals pay higher wages than domestic producers, in line with the insight of … efficiency wages and with the evidence about the multinationals wage premium.' FDI is also more sensitive to increases in …

We study the incidence of pollution taxes and their impact on unemployment in an analytical general equilibrium … efficiency wage model. We find closed-form solutions for the effect of a pollution tax on unemployment, factor prices, and output …

-work time is substantial and varies positively with the local unemployment rate. While average time spent by workers in non …-work conditional on any positive amount rises with the unemployment rate, the fraction of workers reporting positive values varies pro …-cyclically, declining in recessions. These results are consistent with a model in which heterogeneous workers are paid efficiency wages to …