Efficiency Wage in the Frictional Labour Market- A Theoretical Analysis

In this paper we introduce efficiency wage relation in the benchmark model of DMP where worker’s efficiency depends on the wage rate and the labour market tightness. We also examine the parametric effects on the Nash-wage rate, market tightness and on the equilibrium unemployment rate. Our results show that all the results obtained in this paper are identical to those obtained in the original DMP model.

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Year of publication:	2014-11-22
Authors:	Bandopadhyay, Titas Kumar
Institutions:	Volkswirtschaftliche Fakultät, Ludwig-Maximilians-Universität München
Subject:	Efficiency wage \| job destruction

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Extent:	application/pdf
Series:	MPRA Paper.
Type of publication:	Book / Working Paper
Classification:	J2 - Time Allocation; Work Behavior; Employment Determination and Creation ; J20 - Time Allocation; Work Behavior; Employment Determination and Creation. General ; J24 - Human Capital; Skills; Occupational Choice; Labor Productivity
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011110969