Is the Efficiency Wage Hypothesis Valid for Developing Countries? Evidence from the Turkish Cement Industry

The efficiency wage hypothesis is tested by using one of the recently developed methods to measure technical efficiency. We use panel data on 40 Turkish cement plants for the period 1980-1995. The predictions of the efficiency wage hypothesis are tested in two ways: estimation of wage augmented production frontiers and the simultaneous estimation of a production function together with inefficiency effects. Our empirical analysis shows that the wage level is one of the significant factors contributing to the output and technical efficiency of plants in the cement industry in Turkey.

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Year of publication:	1998-04
Authors:	Saygili, Seref
Institutions:	School of Economics, University of Kent
Subject:	Efficiency Wage \| Stochastic Production Function with Composed Errors \| Technical Efficiency

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Extent:	application/pdf
Series:	Studies in Economics. - ISSN 1466-0814.
Type of publication:	Book / Working Paper
Language:	English
Classification:	C12 - Hypothesis Testing ; C13 - Estimation ; C24 - Truncated and Censored Models ; J41 - Contracts: Specific Human Capital, Matching Models, Efficiency Wage Models, and Internal Labor Markets
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005635133