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A dynamic efficiency wage model with learning by doing

  • Jellal, Mohamed
  • Zenou, Yves

We propose a dynamic efficiency wage model with learning by doing. By taking into account the change inthe stock of workers’ knowledge, firms set efficiency wages such that the effort–wage elasticity is not in general equal to one.

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Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 66 (2000)
Issue (Month): 1 (January)
Pages: 99-105

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Handle: RePEc:eee:ecolet:v:66:y:2000:i:1:p:99-105
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  1. Stiglitz, Joseph E, 1987. "The Causes and Consequences of the Dependence of Quality on Price," Journal of Economic Literature, American Economic Association, vol. 25(1), pages 1-48, March.
  2. Lin, Chung-cheng & Lai, Ching-chong, 1994. "The turnover costs and the Solow condition in an efficiency wage model with intertemporal optimization," Economics Letters, Elsevier, vol. 45(4), pages 501-505, August.
  3. Solow, Robert M., 1979. "Another possible source of wage stickiness," Journal of Macroeconomics, Elsevier, vol. 1(1), pages 79-82.
  4. Jellal, Mohamed & Zenou, Yves, 1999. "Efficiency wages and the quality of job matching," Journal of Economic Behavior & Organization, Elsevier, vol. 39(2), pages 201-217, June.
  5. Banerji, Sanjay & Gupta, Manas Ranjan, 1997. "The efficiency wage given long-run employment and concave labor constraint," Journal of Development Economics, Elsevier, vol. 53(1), pages 185-195, June.
  6. Ramaswamy, Ramana & Rowthorn, Robert E, 1991. "Efficiency Wages and Wage Dispersion," Economica, London School of Economics and Political Science, vol. 58(232), pages 501-14, November.
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