aSome economists argue that efficiency wages lead to higher rates of unemployment. Because wages are set above the equilibrium wage rate, a consumer surplus arises. A consumer surplus, in this case, is the difference between what the employer is willing to pay an employee and the actual wage ...
W.Meeusen.Efficiency Wages,Unemployment Benefits and Union-firm Wage Bargaining:The Issue of the Choiceof the Outside Option.Journal of Labor Research. 2011W.Meeusen.Efficiency Wages,Unemployment Benefits and Union-firm Wage Bargaining:The Issue of the Choiceof the Outside Option. Journal of Labor...
Europe faces unemployment due to efficiency wages. We derive the conditions for there to be factor price equalization (FPE) in this world. It is shown that for every distribution of labor between the two countries, there exists a range of skill allocations leading to FPE. Focusing on the FPE...
efficiency wageslabour taxationunemploymentunion bargainingHow does the development of the financial sector affect industrial growth? What effect does it have on... Raghuram G. rajan,L Zingales - 《Oxford Review of Economic Policy》 被引量: 737发表: 2001年 Do Social Policies Harm Employment and Gr...
efficiency wages need to be set higher when the unemployment rate is low, d. efficiency Do labor skills have diminishing marginal productivity? By paying efficiency wages, firms contribute to higher unemployment because they: a) Increase the wage bill, b) Make workers more productive, c) Keep ...
One way it can hurt them is it increases unemployment since some of the jobs done by them are taken to other countries. Also, it becomes difficult for companies to control the quality of products produced and can lose control of products being produced....
The total welfare budget is a positive function of both the aggregate unemployment rate and the overall price level, as measured by the consumer price index (CPI), whereas total pension payments are only indexed to the CPI. The welfare budget determination rule is important because, in the ...
In part 2 of this book, we will have a richer and broader definition of s.Each unemployed worker earns a fixed unemployment benefit wU > 0, pays a land rent R(x), consumes hU = 1 unit of land and zU units of the non-spatial composite good. In this context, because the preferences...
The economic impact of Covid-19 will include a significant rise in unemployment. Recovery from the spike in unemployment will be slow, meaning the unemployment becomes long-term. One of the lessons from employment programmes around the world is that distance from work increases over time – the...
Western Europe, on the other hand, appears to be the other extreme with a late peak and more gradual phase out, suggesting that wages are significantly higher than in other EU regions. For a unified picture of Europe, the area chart in the right panel stacks the regional distributions ...