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A physiological foundation for the nutrition-based efficiency wage model

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  • Carl-Johan Dalgaard
  • Holger Strulik

Abstract

Drawing on recent research on allometric scaling and energy consumption, the present paper develops a nutrition-based efficiency wage model from first principles. The biologically micro-founded model allows us to address empirical criticism of the original nutrition-based efficiency wage model. By extending the model with respect to heterogeneity in worker body size and a physiologically founded impact of body size on productivity, we demonstrate that the nutrition-based efficiency wage model is compatible with the empirical regularity that taller workers simultaneously earn higher wages and are less likely to be unemployed in less developed economies. The theory also provides an answer to the question of why the height-unemployment association may disappear in the process of development. Copyright 2011 Oxford University Press 2010 All rights reserved, Oxford University Press.

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File URL: http://hdl.handle.net/10.1093/oep/gpq031
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Bibliographic Info

Article provided by Oxford University Press in its journal Oxford Economic Papers.

Volume (Year): 63 (2011)
Issue (Month): 2 (April)
Pages: 232-253

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Handle: RePEc:oup:oxecpp:v:63:y:2011:i:2:p:232-253

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  1. Oded Galor & David N. Weil, 1993. "The Gender Gap, Fertility, and Growth," NBER Working Papers 4550, National Bureau of Economic Research, Inc.
  2. Robert W. Fogel, 1994. "Economic Growth, Population Theory, and Physiology: The Bearing of Long-Term Processes on the Making of Economic Policy," NBER Working Papers 4638, National Bureau of Economic Research, Inc.
  3. Komlos, John & Hau, Michel & Bourginat, Nicolas, 2003. "An Anthropometric History of Early-Modern France," Discussion Papers in Economics 54, University of Munich, Department of Economics.
  4. Dasgupta, Partha, 1997. "Nutritional status, the capacity for work, and poverty traps," Journal of Econometrics, Elsevier, vol. 77(1), pages 5-37, March.
  5. Dasgupta, Partha & Ray, Debraj, 1986. "Inequality as a Determinant of Malnutrition and Unemployment: Theory," Economic Journal, Royal Economic Society, vol. 96(384), pages 1011-34, December.
  6. Bose, Gautam, 1997. "Nutritional efficiency wages: a policy framework," Journal of Development Economics, Elsevier, vol. 54(2), pages 469-478, December.
  7. Bliss, Christopher & Stern, Nicholas, 1978. "Productivity, wages and nutrition : Part I: the theory," Journal of Development Economics, Elsevier, vol. 5(4), pages 331-362, December.
  8. Bliss, Christopher & Stern, Nicholas, 1978. "Productivity, wages and nutrition : Part II: Some observations," Journal of Development Economics, Elsevier, vol. 5(4), pages 363-398, December.
  9. Strauss, John, 1986. "Does Better Nutrition Raise Farm Productivity?," Journal of Political Economy, University of Chicago Press, vol. 94(2), pages 297-320, April.
  10. Solow, Robert M., 1979. "Another possible source of wage stickiness," Journal of Macroeconomics, Elsevier, vol. 1(1), pages 79-82.
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Cited by:
  1. Klaus Prettner & David E. Bloom & Holger Strulik, 2012. "Declining fertility and economic well-being: do education and health ride to the rescue?," PGDA Working Papers 8412, Program on the Global Demography of Aging.

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