Conventional theory predicts that productivity gains lead to hikes in real pay. Efficiency wage theory hypothesizes … efficiency benefit of corporatism. For laborers in manufacturing, we find that wage hikes result in productivity gains. Managers … that pay increases can lead to productivity improvements. But would such results be observed in a corporatist economy with …

. Although the choice of whether to include CNCs in employment contracts is made by firms, the real extent of their … productivity. We assert that an increase in state level CNC enforceability is detrimental to firm productivity, and this …