To explain the rise in the college wage premium in developed economies in the past decades, the present paper examines the effects of technological progress on workers' effort incentives, which determine the effective labor supply. Five effort incentive effects of technological progress are...

To explain the rise in the college wage premium in developed economies in the past decades, the present paper examines the effects of technological progress on workers‘ effort incentives, which determine the effective labor supply. Five effort incentive effects of technological progress are...

This paper introduces technological progress into an efficiency wage model, and argues that changes in the rate of technical change affect not only the demand for but also the effective supply of labour. This creates a new mechanism through which technological progress impacts on the wage of...

Many OECD economies suffered a productivity slowdown beginning in the early 1970s. However, the increase in unemployment that followed this slowdown was more pronounced in European economies relative to the US. In this paper we present an efficiency wage model, which enables us to identify five...