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

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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.

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Bibliographic Info

Paper provided by Centre for the Study of African Economies, University of Oxford in its series CSAE Working Paper Series with number 1995-17.

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Date of creation: 1995
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Handle: RePEc:csa:wpaper:1995-17

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Related research

Keywords: Labour Markets; Rent sharing; Efficiency wages; Developing countries;

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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 002729, UNIVERSIDAD DEL ROSARIO.

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