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Efficiency Wages and Bargaining

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Author Info
Frank Walsh (University College of Dublin)

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Abstract

I argue that in contrast to the literature to date efficiency wage and bargaining solutions will typically be independent. If the bargained wage satisfies the efficiency wage constraint efficiency wages are irrelevant. If it does not, typically we have the efficiency wage solution and bargaining is irrelevant.

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File URL: http://www.ucd.ie/economics/research/papers/2005/WP05.23.pdf
File Format: application/pdf
File Function: First version, 2005
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Publisher Info
Paper provided by School Of Economics, University College Dublin in its series Working Papers with number 200523.

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Length: 12 pages
Date of creation: 26 Nov 2005
Date of revision:
Handle: RePEc:ucn:wpaper:200523

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Postal: UCD, Belfield, Dublin 4
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Web page: http://www.ucd.ie/economics
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  1. Oswald, Andrew J., 1993. "Efficient contracts are on the labour demand curve : Theory and facts," Labour Economics, Elsevier, vol. 1(1), pages 85-113, June. [Downloadable!] (restricted)
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  2. George A. Akerlof & Lawrence F. Katz, 1989. "Workers' Trust Funds and the Logic of Wage Profiles," NBER Working Papers 2548, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  3. Ken Binmore & Ariel Rubinstein & Asher Wolinsky, 1986. "The Nash Bargaining Solution in Economic Modelling," RAND Journal of Economics, The RAND Corporation, vol. 17(2), pages 176-188, Summer. [Downloadable!] (restricted)
  4. Lawrence F. Katz, 1986. "Efficiency Wage Theories: A Partial Evaluation," NBER Working Papers 1906, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  5. Lindbeck, Assar & Snower, Dennis J., 1991. "Interactions between the efficiency wage and insider-outsider theories," Economics Letters, Elsevier, vol. 37(2), pages 193-196, October. [Downloadable!] (restricted)
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  6. Konings, Jozef & Walsh, Patrick P, 1994. "Evidence of Efficiency Wage Payments in UK Firm Level Panel Data," Economic Journal, Royal Economic Society, vol. 104(424), pages 542-55, May. [Downloadable!] (restricted)
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  7. Machin, Stephen & Manning, Alan, 1992. "Testing Dynamic Models of Worker Effort," Journal of Labor Economics, University of Chicago Press, vol. 10(3), pages 288-305, July. [Downloadable!] (restricted)
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