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Efficiency wages and rent sharing: a note and some empirical findings

Author

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  • Francis Teal

Abstract

Tests for the efficiency wages hypothesis have proposed to use production functions to ask if wages increase can pay for themselves. Tests for rent sharing have used a profit term in the earings function. In this note the relationship between these tests is investigated empirically. Evidence is presented for the Ghana manufacturing sector which allows a test discriminating between the two hypotheses to be conducted.

Suggested Citation

  • Francis Teal, 1995. "Efficiency wages and rent sharing: a note and some empirical findings," CSAE Working Paper Series 1995-17, Centre for the Study of African Economies, University of Oxford.
    • Handle: RePEc:csa:wpaper:1995-17
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    File URL: https://ora.ox.ac.uk/objects/uuid:7ae63d67-bb13-4a1c-aa7d-474eb73ae90f
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    Cited by:

    1. Rodrigo Taborda & Juan Carlos Guataqui, 2003. "Firm level evidence of efficiency wages and labor turnover in Colombia's manufacturing industry," Borradores de Investigación 2729, Universidad del Rosario.

    More about this item

    Keywords

    Labour Markets; Rent sharing; Efficiency wages; Developing countries;
    All these keywords.

    JEL classification:

    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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