Overeducated workers are more productive and have higher wages in comparison to their adequately educated coworkers in … the same jobs. However, they face a series of challenges in the labor market, including lower wages in comparison to their … performance pay jobs as an adjustment mechanism and that performance pay moderates their wages. Using German Socio-Economic Panel …

Overeducated workers are more productive and have higher wages in comparison to their adequately educated coworkers in … the same jobs. However, they face a series of challenges in the labor market, including lower wages in comparison to their … performance pay jobs as an adjustment mechanism and that performance pay moderates their wages. Using German Socio-Economic Panel …

Higher wages increase labor costs but improve the productivity of the labor force through several channels. If firms … take this into account and set their wages accordingly, the resulting wages may fail to adjust demand and supply but may … higher wages. All these phenomena are well established empirically. Efficiency wage theory provides an integrated explanation …

firms to pay differentially high wages. We estimate individual worker hold-up power by occupation using the effect of worker … permanent firm productivity innovations to wages, supporting the main model predictions. Accounting for heterogeneity in hold …) hold-up power decreases the responsiveness of wages to labor market slack …

workers, firms, and occupations with a focus on peer effects in wages rather than productivity. Our estimation strategy … - which links the average permanent productivity of workers' peers to their wages - circumvents the reflection problem and … accounts for the endogenous sorting of workers into peer groups and firms. On average, we find only small peer effects in wages …