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Foreign-owned firms have consistently been found to pay higher wages than domestic firms to what appear to be equally productive workers in both developed and developing countries alike. Although a number of studies have documented and some attempted to explain this stylized fact, the issue...
Persistent link: https://www.econbiz.de/10011413654
Efficiency wage theory predicts that the wage per unit of effort will be lower in intensively monitored sectors. This wage differential will increase in effort. Using employer-employee matched data from Ghana we provide evidence supporting this hypothesis.
Persistent link: https://www.econbiz.de/10011415326
In monopsony models of the labour market either a minimum wage or an employment subsidy financed by a lump sum tax on profits can achieve the efficient level of employment and output. Incorporating working conditions into a monopsony model where higher wages raise firm labour supply, but less...
Persistent link: https://www.econbiz.de/10011415328
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In monopsony models of the labour market either a minimum wage or an employment subsidy financed by a lump sum tax on profits can achieve the efficient level of employment and output. Incorporating working conditions into a monopsony model where higher wages raise firm labour supply, but less...
Persistent link: https://www.econbiz.de/10011533800
On April the 6th of 1998 the government of the Republic of Trinidad and Tobago introduced a National Minimum Wage for the first time. Using the Trinidad and Tobago labour force survey we show that potential costs, if there had been full compliance, could have been substantial. An examination of...
Persistent link: https://www.econbiz.de/10011534682
We show theoretically that when larger firms pay higher wages and are more likely to be caught defaulting on labour taxes, then large high-wage firms will be in the formal sector and small low-wage firms will be in the informal sector. The formal sector wage premium is thus just a firm size wage...
Persistent link: https://www.econbiz.de/10013316727
Using a standard production function the equilibrium hours per worker wage locus is shown to be u-shaped in a competitive labour market. A minimum wage may thus either increase or decrease hours per worker and, by extension, the number of workers. We provide supporting evidence for this using...
Persistent link: https://www.econbiz.de/10012730374
This paper investigates the link between nationality of ownership and wage elasticities of labour demand at the level of the plant. In particular, we examine whether labour demand in multinationals becomes less elastic with respect to the wage if the plant has backward linkages with the local...
Persistent link: https://www.econbiz.de/10012778115