Brecher, Richard A.; Chen, Zhiqi; Choudhri, Ehsan U. - 2004
An efficiency-wage model of steady-state equilibrium with labor-augmenting technical progress is developed to explore … or determined endogenously. In both cases, we preserve key results of the Shapiro-Stiglitz efficiency-wage analysis … rate may raise the rate of efficiency-wage unemployment, and a once-for-all rise in the labor force may reduce the …