A Simple Test of the Efficiency Wage Hypothesis Revisited

Arbeitspapier

Gerlach and Stephan (1994) proposed a test based on the idea that the wage premium, the part of the wage which is not explained by the stock of human capital, should help predict variables such as career expectations (quit, change occupation, leave the labour force) and some job characteristics (like degree of supervision). We examine a number of issues related to sample selection and split, as well as the choice of tenure and experience variables, and obtain surprisingly robust results, which differ somewhat from theirs: in particular, we find no effect of the wage premium on career expectations. The main source of these differences appears to lie in the pooling of Germans and foreigners.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ZEW Discussion Papers ; No. 97-23

Classification and Topics

• Classification: Wirtschaft ; Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity ; Labor Contracts
• Subject: Efficiency wages ; wage equations

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Dastani, Parsis ; Laisney, François ; Vouillaume, Sophie
• Event: Veröffentlichung
• (who): Zentrum für Europäische Wirtschaftsforschung (ZEW) ; ZBW – Leibniz Information Centre for Economics
• (where): Mannheim
• (when): 1997

Further information

• Handle: http://hdl.handle.net/10419/29427
• Last update: 10.03.2025, 11:41 AM CET