Efficiency Wages, Interfirm Comparison, and Unemployment
AbstractThe paper presents an efficiency wage model where worker effort depends on own wages relative both to wages of other workers in the firm and to similar workers in other firms. First, we show how the Solow conditions are modified if internal comparison effects are at work. Second, we discuss the effect of internal wage comparison on wage inequality within firms. Third, we study unemployment and relative wage determination within a general equilibrium model, and analyze the effect of technological change and various tax policies on equilibrium unemployment and relative wages. Finally, the short-run effects of aggregate demand shocks are analyzed.
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Bibliographic InfoArticle provided by Southern Economic Association in its journal Southern Economic Journal.
Volume (Year): 68 (2001)
Issue (Month): 2 (October)
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- Andrew Clark & Davis Masclet & Marie-Claire Villeval, 2006.
"Effort and Comparison Income : Survey and Experimental Evidence,"
0601, Groupe d'Analyse et de Théorie Economique (GATE), Centre national de la recherche scientifique (CNRS), Université Lyon 2, Ecole Normale Supérieure.
- Andrew E. Clark & David Masclet & Marie Claire Villeval, 2006. "Effort and comparison income: Survey and experimental evidence," PSE Working Papers halshs-00590552, HAL.
- Andrew Clark & David Masclet & Marie-Claire Villeval, 2006. "Effort and Comparison Income : Survey and Experimental Evidence," Post-Print halshs-00142880, HAL.
- repec:prs:ecoprv:ecop_0249-4744_1995_num_121_5_6137 is not listed on IDEAS
- repec:hal:wpaper:halshs-00590552 is not listed on IDEAS
- Andrew E. Clark & David Masclet & Marie-Claire Villeval, 2008.
"Effort and Comparison Income: Experimental and Survey Evidence,"
CEP Discussion Papers
dp0886, Centre for Economic Performance, LSE.
- Andrew E. Clark & David Masclet & Marie Claire Villeval, 2010. "Effort and Comparison Income: Experimental and Survey Evidence," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 63(3), pages 407-426, April.
- Andrew Clark & David Masclet & Marie-Claire Villeval, 2010. "Effort and comparison income: experimental and survey evidence," Post-Print halshs-00459777, HAL.
- Clark, Andrew E. & Masclet, David & Villeval, Marie Claire, 2006. "Effort and Comparison Income: Experimental and Survey Evidence," IZA Discussion Papers 2169, Institute for the Study of Labor (IZA).
- Andrew E. Clark & David Masclet & Marie-Claire Villeval, 2008. "Effort and comparison income: experimental and survey evidence," LSE Research Online Documents on Economics 28502, London School of Economics and Political Science, LSE Library.
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