Efficiency wages revisited: The internal reference perspective

Details

Serval ID
serval:BIB_D5805E1968E6
Type
Article: article from journal or magazin.
Collection
Publications
Institution
Title
Efficiency wages revisited: The internal reference perspective
Journal
Economics Letters
Author(s)
Danthine J.-P., Kurmann A.
Publication state
Published
Issued date
2006
Peer-reviewed
Oui
Volume
90
Number
2
Pages
278-284
Abstract
The missing wage rigidity in general equilibrium models of efficiency wages is an artifact of the external wage reference perspective conventionally adopted by the literature. Efficiency wage models based on an internal perspective, in which the wage reference is made dependent on the firm's ability to pay, are capable of generating strong wage rigidity. This paper makes the point in the context of the gift-exchange framework originally proposed by Akerlof [1982].
Keywords
Efficiency wages, Wage rigidity, Rent sharing
Create date
19/11/2007 10:49
Last modification date
20/08/2019 15:55
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