Artikel
Efficiency wages: Variants and implications
Higher wages increase labor costs but also improve the productivity of the labor force in several ways. If firms take this into account and set their wages accordingly, the resulting wages could fail to adjust demand and supply but may induce phenomena like over-education, discrimination, regional wage differentials, and a tendency for larger firms to pay higher wages. All these phenomena are quantitatively important and well-established empirically. Efficiency wage theory provides an integrated theoretical explanation rather than a sundry list of reasons, and offers an efficiency argument for progressive income taxation.
- Language
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Englisch
- Bibliographic citation
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Journal: IZA World of Labor ; ISSN: 2054-9571 ; Year: 2016 ; Bonn: Institute for the Study of Labor (IZA)
- Classification
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Wirtschaft
Wage Level and Structure; Wage Differentials
Labor Turnover; Vacancies; Layoffs
- Subject
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efficiency wages
selection wages
turnover
morale
discipline
- Event
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Geistige Schöpfung
- (who)
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Schlicht, Ekkehart
- Event
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Veröffentlichung
- (who)
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Institute for the Study of Labor (IZA)
- (where)
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Bonn
- (when)
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2016
- DOI
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doi:10.15185/izawol.275
- Handle
- Last update
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10.03.2025, 11:42 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Artikel
Associated
- Schlicht, Ekkehart
- Institute for the Study of Labor (IZA)
Time of origin
- 2016
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Demand heterogeneity in insurance markets: Implications for equity and efficiency
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Wage bargaining and employment revisited: separability and efficiency in collective bargaining
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Measuring the efficiency of public schools in Uruguay: Main drivers and policy implications
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