Efficiency wages and the quality of job matching
Article Abstract:
The concept of efficiency wage is studied by examining workers' efforts in finding jobs and the quality of job matching. The efficiency wage theory postulates that there is a positive relationship between compensation offered by firms and worker's efforts in finding their jobs. Two conditions are considered. The first is that unemployment is due to high wage levels and job mismatch and secondly, job matching is a random variable. It is concluded that the second condition is more accurate since it is not apparent that quality of job matching falls with the efficiency wage.
Publication Name: Journal of Economic Behavior & Organization
Subject: Economics
ISSN: 0167-2681
Year: 1999
User Contributions:
Comment about this article or add new information about this topic:
Are wages habit-forming? Evidence from micro data
Article Abstract:
The utility, or satisfaction realized by employees on the wages they receive assuming a certain level of consumption was studied by examining the attitudes of 2000 British employees regarding their wages and job satisfaction. The employees were not promoted and remained with the same employer. The findings suggest that there is a positive relationship between changes in wage 'waves' and satisfaction but not with wage levels. Employees who are paid lesser and are less well-educated experience higher levels of satisfaction with their pay increases.
Publication Name: Journal of Economic Behavior & Organization
Subject: Economics
ISSN: 0167-2681
Year: 1999
User Contributions:
Comment about this article or add new information about this topic:
Is there a decision weight phi function?
Article Abstract:
The principle that expected utility be maximized in the expected utility theory is negated in observations of risky situations. A prospect theory has been proposed to preserve the maximization principle. The theory replaces the objective probabilities where utility is weighted by subjective decision weights and indicates that overall prospect value is being maximized.
Publication Name: Journal of Economic Behavior & Organization
Subject: Economics
ISSN: 0167-2681
Year: 1995
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Seasonality, stock returns and the macroeconomy. Are women less selfish than men?: evidence from dictator experiments
- Abstracts: Price wars and the stability of collusion: a study of the pre-World War I bromine industry. part 2 Using reserve prices to deter collusion in procurement competition
- Abstracts: Noisy communication and the evolution of cooperation. Are two a good representative for many? Privatization and employment: a study of the jute industry in Bangladesh
- Abstracts: John Elliot Cairnes and the 'rehabilitation' of the classical wage fund doctrine. Laws on long-term prices
- Abstracts: Interest-group competition and the organization of Congress: theory and evidence from financial services' political action committees