Testing For Efficiency Wages In Iran

testing for efficiency wages in iran

Sticky Wages, Efficiency Wages, and Market Processes

ainstream macroeconomics is in disarray. Perusal of commonly used textbooks in macroeconomics will confirm that impression without much difficulty. Unfortunately, the same statement could have been made, and often was made, fifteen years ago. While in this sense little has changed in recent years, the disarray is now more fundamental and severe than a t any time since the 1930s. Amidst this dis...

Workfare, Monitoring, and Efficiency Wages

The impact of a stronger work requirement for welfare recipients in a workfare program is studied in an efficiency wage model where a representative firm chooses its level of monitoring activities. A stricter workfare policy raises employment and monitoring activities. It typically increases profits and reduces the tax rate. The impact on the net wage is ambiguous. Utility levels of employed wo...

Efficiency Wages and Performance Pay

This paper studies contract selection between efficiency wages and subjective performance pay to motivate workers in a market setting. The optimal wage contract (which may be a combination of efficiency wages and subjective performance pay) is determined by turnover costs in labor markets. Specifically, labor markets with higher turnover costs use more subjective performance pay and less effici...

Discrimination and Efficiency Wages: Estimates of the Role of Efficiency Wages in MaleFernale Wage Differentials

R ecent work on efficiency wage models has increased our understanding of discrimination, as well as the operation of labor markets (Bulow and Summers [1986]; Bowles [19851; and Akerlof [19841). Bulow and Summers [I9861 developed an efficiency wage model of labor markets that has direct implications for discrimination. They argued that the wage premia necessary to keep males and females from sh...

Profitability, investment, and efficiency wages

We examine a model that blends the neoclassical theory of investment with an intertemporal efficiency wage model with turnover costs. Investment decisions in capital are associated with the allocation of labor and the determination of efficiency wages. The model relates Tobin’s q to efficiency wages and, in particular, to the Solow condition. It provides a general framework to analyze firm’s in...