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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

Institutional Efficiency, Monitoring Costs, and the Investment Share of FDI

Aizenman, Joshua - 2002

This paper models and tests the implications of costly enforcement of property rights on the pattern of foreign direct investment (FDI). We posit that domestic agents have a comparative advantage over foreign agents in overcoming some of the obstacles associated with corruption and weak...

Persistent link: https://www.econbiz.de/10012469382

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 … departures from Pareto optimality in SOE economies can be large and trade liberalization acts to discipline shirking associated …. This is especially the case where SOEs account for a significant fraction of economic activity and shirking is involved …

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

Fiscal Shocks in an Efficiency Wage Model

Burnside, Craig - 2000

This paper analyzes the ability of a general equilibrium efficiency wage model to account for the estimated response of hours worked and of real wages to a fiscal policy shock. Our key finding is that the model cannot do so unless we make the counterfactual assumption that marginal tax rates are...

Persistent link: https://www.econbiz.de/10012471261

Do Labor Rents Justify Strategic Trade and Industrial Policy?

Dickens, William T. - 1995

Several efficiency wage theories of wage determination have the property that identical workers are more productive in high wage industries and that the promotion of employment in high wage industries can increase GDP (and some measures of welfare). I argue that while policies to favor high wage...

Persistent link: https://www.econbiz.de/10012473749

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

Labor Market Dynamics When Unemployment Is A Worker Discipline Device

Kimball, Miles S. - 1989

Efficiency wage models of the effort elicitation type have important implications for labor market dynamics. These models have a wide array of discontinuous sunspot equilibria driven by extraneous variables, in addition to well-behaved equilibria characterized by continuous, slowly adjusting...

Persistent link: https://www.econbiz.de/10012476081

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

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