Monash University
Browse
monash_62853.pdf (979.36 kB)

Testing efficiency wage theory: the views of actual market participants

Download (979.36 kB)
journal contribution
posted on 2017-06-05, 06:49 authored by Rich, Judith, Teicher, Julian
Empirical support for the competing theories of efficiency wages has been sought by conducting surveys of firms in the U.K., the U.S.A., and Sweden. This survey of Australian firms found qualified support for the shirking model of efficiency wages proposed by Shapiro and Stiglitz (1984). While little support was found for the adverse selection model strong support was found for the turnover model, consistent with the surveys of Blinder and Choi (1990) and Bewley (1995,1999). All the surveys find pervasive support for the notion of fairness as an explanation for wage rigidity endorsing efficiency wage theory as developed by Akeriof(1982, 1984) and Akerlof and Yellen (1988, 1990).

History

Year of first publication

2001

Series

Working paper series (Monash University. Department of Management).

Usage metrics

    Categories

    No categories selected

    Exports

    RefWorks
    BibTeX
    Ref. manager
    Endnote
    DataCite
    NLM
    DC