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Efficiency Wages, Unemployment, and Environmental Policy

Heutel, Garth - 2020

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 prices, and we identify and isolate different channels...

Persistent link: https://www.econbiz.de/10012482180

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

A Test of Negotiation and Incentive Compensation Models Using Longitudinal French Enterprise Data

Abowd, John M. - 1992

In this paper we model the determinants of firm level wages and employment explicitly allowing for firm and worker heterogeneity. Our firms have three types of workers (cadres, skilled and unskilled) and may explicitly choose from among three distinct contracting regimes (strong form efficiency,...

Persistent link: https://www.econbiz.de/10012474935

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