Efficiency Wages Revisited: The Internal Reference Perspective (new version)

The missing wage rigidity in general equilibrium models of effciency wages is an artifact of the external wage reference perspective conventionally adopted by the literature. Effciency 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].

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Year of publication:	2004-06
Authors:	DANTHINE, Jean-Pierre ; KURMANN, André
Institutions:	Départment d'économétrie et d'économie politique (DEEP), Faculté des Hautes Études Commerciales (HEC)
Subject:	efficiency wages \| wage rigidity \| rent-sharing

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Extent:	application/pdf
Series:	Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP).
Type of publication:	Book / Working Paper
Language:	English
Notes:	Published in Economics Letters, vol.90, 2006, pp. 278-284 8 pages
Classification:	E24 - Employment; Unemployment; Wages ; E32 - Business Fluctuations; Cycles ; J50 - Labor-Management Relations, Trade Unions, and Collective Bargaining. General
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005481811