Similar Search Results

Relative Wages, Efficiency Wages, and Keynesian Unemployment

Summers, Lawrence H. - 1988

While modern economic theorists have produced a variety of explanations for the failure of wages to fall in the face of unemployment, Keynes emphasis on relative wages has not been reflected in most contemporary discussions. This short paper suggests that relative wage theories in which workers'...

Persistent link: https://www.econbiz.de/10012476479

Efficiency Wage Theories : A Partial Evaluation

Katz, Lawrence F. - 1986

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...

Persistent link: https://www.econbiz.de/10012477169

A Theory of Firm Scope

Hart, Oliver - 2008

The existing literature on firms, based on incomplete contracts and property rights, emphasizes that the ownership of assets - and thereby firm boundaries - is determined in such a way as to encourage relationship-specific investments by the appropriate parties. It is generally accepted that...

Persistent link: https://www.econbiz.de/10012464034

Norms and the Theory of the Firm

Hart, Oliver - 2001

theory of the firm. The paper argues that (a) although norms are undoubtedly very important both inside and between firms …, incorporating them into the theory has been very difficult and is likely to continue to be so in the near future; (b) so far norms …-or-buy' decision) that is, at this point a norm-free theory of the firm and a norm-rich theory of the firm don't seem to have very …

Persistent link: https://www.econbiz.de/10012470438

Towards a Legal Theory of the Firm : The Effects of Enterprise Liability on Asset Partitioning, Decentralization and Corporate Group Growth

Belenzon, Sharon - 2018

Limited liability is a key attribute of the corporate form and one of the most important institutional innovations of the nineteenth century. However, when the owner of a corporation is another corporation as in many corporate groups, an important justification for limited liability--to protect...

Persistent link: https://www.econbiz.de/10012453000

Pay Inequality, Pay Secrecy, and Effort : Theory and Evidence

Charness, Gary - 2005

We study worker and firm behavior in an efficiency-wage environment where co-workers' wages may potentially influence a worker's effort. Theoretically, we show that an increase in workers' responsiveness to co-workers' wages should lead profit-maximizing firms to compress wages under quite...

Persistent link: https://www.econbiz.de/10012466885

State-Owned Enterprises, Shirking and Trade Liberalization

Ghosh, Madanmohan - 2000

We explore the implications of trade liberalization in economies with State Owned enterprises (SOEs) and shirking. SOEs are modelled as controlled by the members of the enterprise who determine output and effort levels, while facing output prices and wage rates set by government. Enterprise...

Persistent link: https://www.econbiz.de/10012471065

Why Do Wage Profiles Slope Upwards? Tests of the General Human Capital Model

Neumark, David - 1994

This paper tests some empirical implications of the general human capital model's explanation of rising wage profiles. At the individual level, the model implies that there will be a negative relationship between the initial wage level and wage growth of young, inexperienced workers. At the...

Persistent link: https://www.econbiz.de/10012474244

Unobserved Ability, Efficiency Wages, and Interindustry Wage Differentials

Blackburn, McKinley - 1991

Interindustry wage differentials in wage regressions estimated for individuals have been interpreted as evidence consistent with efficiency wage models. A principal competing explanation is that these differentials are generated by differences across workers in unobserved ability. This paper...

Persistent link: https://www.econbiz.de/10012475132

Pareto Inefficiency of Market Economies : Search and Efficiency Wage Models

Greenwald, Bruce - 1988

This paper shows that market economies with search and in which wages are affected by efficiency wage considerations are not constrained Pareto efficient. Wages are not set at Pareto efficient levels, nor is the level of employment (unemployment) Pareto efficient. We identify the nature of the...

Persistent link: https://www.econbiz.de/10012476413