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Unemployment, Long-term Employment Relations, and Productivity Growth

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  • Rebitzer, James B

Abstract

Using an "effort-regulation" type of efficiency wage model, it is demonstrated that a firm may respond to slackening labor markets by acting to increase the intensity with which workers work. The magnitude of this work intensity effect depends on the structure of employment relations. Where long-term employment relations are prevalent, the effect of labor market slack on work intensity may be diminished. These propositions are tested empirically by estimating the effects unemployment and long-term employment have on productivity growth in two-digit manufacturing industries. Copyright 1987 by MIT Press.

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Bibliographic Info

Article provided by MIT Press in its journal Review of Economics & Statistics.

Volume (Year): 69 (1987)
Issue (Month): 4 (November)
Pages: 627-35

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Handle: RePEc:tpr:restat:v:69:y:1987:i:4:p:627-35

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Web page: http://mitpress.mit.edu/journals/

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Web: http://mitpress.mit.edu/journal-home.tcl?issn=00346535

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Cited by:
  1. Carter, Thomas J., 2005. "Money and efficiency wages: the neglected effect of employment on efficiency," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 34(2), pages 199-209, March.
  2. Edward P. Lazear & Kathryn L. Shaw & Christopher Stanton, 2013. "Making Do With Less: Working Harder During Recessions," NBER Working Papers 19328, National Bureau of Economic Research, Inc.
  3. Rebitzer, James B., 1995. "Is there a trade-off between supervision and wages? An empirical test of efficiency wage theory," Journal of Economic Behavior & Organization, Elsevier, vol. 28(1), pages 107-129, September.
  4. Campbell III, Carl M., 2006. "A model of the determinants of effort," Economic Modelling, Elsevier, vol. 23(2), pages 215-237, March.

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