IDEAS home Printed from https://ideas.repec.org/a/oup/oxecpp/v63y2011i2p232-253.html
   My bibliography  Save this article

A physiological foundation for the nutrition-based efficiency wage model

Author

Listed:
  • Carl-Johan Dalgaard
  • Holger Strulik

Abstract

Drawing on recent research on allometric scaling and energy consumption, the present paper develops a nutrition-based efficiency wage model from first principles. The biologically micro-founded model allows us to address empirical criticism of the original nutrition-based efficiency wage model. By extending the model with respect to heterogeneity in worker body size and a physiologically founded impact of body size on productivity, we demonstrate that the nutrition-based efficiency wage model is compatible with the empirical regularity that taller workers simultaneously earn higher wages and are less likely to be unemployed in less developed economies. The theory also provides an answer to the question of why the height-unemployment association may disappear in the process of development. Copyright 2011 Oxford University Press 2010 All rights reserved, Oxford University Press.

Suggested Citation

  • Carl-Johan Dalgaard & Holger Strulik, 2011. "A physiological foundation for the nutrition-based efficiency wage model," Oxford Economic Papers, Oxford University Press, vol. 63(2), pages 232-253, April.
    • Handle: RePEc:oup:oxecpp:v:63:y:2011:i:2:p:232-253
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1093/oep/gpq031
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Komlos, John, 2003. "An anthropometric history of early-modern France," European Review of Economic History, Cambridge University Press, vol. 7(2), pages 159-189, August.
    2. Deolalikar, Anil B, 1988. "Nutrition and Labor Productivity in Agriculture: Estimates for Rural South India," The Review of Economics and Statistics, MIT Press, vol. 70(3), pages 406-413, August.
    3. T. Paul Schultz, 2002. "Wage Gains Associated with Height as a Form of Health Human Capital," American Economic Review, American Economic Association, vol. 92(2), pages 349-353, May.
    4. Bliss, Christopher & Stern, Nicholas, 1978. "Productivity, wages and nutrition : Part I: the theory," Journal of Development Economics, Elsevier, vol. 5(4), pages 331-362, December.
    5. Bliss, Christopher & Stern, Nicholas, 1978. "Productivity, wages and nutrition : Part II: Some observations," Journal of Development Economics, Elsevier, vol. 5(4), pages 363-398, December.
    6. Strauss, John, 1986. "Does Better Nutrition Raise Farm Productivity?," Journal of Political Economy, University of Chicago Press, vol. 94(2), pages 297-320, April.
    7. Galor, Oded & Weil, David N, 1996. "The Gender Gap, Fertility, and Growth," American Economic Review, American Economic Association, vol. 86(3), pages 374-387, June.
    8. Peter Kirby, 1995. "Causes of short stature among coal-mining children, 1823–1850," Economic History Review, Economic History Society, vol. 48(4), pages 687-699, November.
    9. Foster, Andrew D & Rosenzweig, Mark R, 1994. "A Test for Moral Hazard in the Labor Market: Contractual Arrangements, Effort, and Health," The Review of Economics and Statistics, MIT Press, vol. 76(2), pages 213-227, May.
    10. Fogel, Robert W, 1994. "Economic Growth, Population Theory, and Physiology: The Bearing of Long-Term Processes on the Making of Economic Policy," American Economic Review, American Economic Association, vol. 84(3), pages 369-395, June.
    11. Dasgupta, Partha, 1997. "Nutritional status, the capacity for work, and poverty traps," Journal of Econometrics, Elsevier, vol. 77(1), pages 5-37, March.
    12. Dasgupta, Partha & Ray, Debraj, 1986. "Inequality as a Determinant of Malnutrition and Unemployment: Theory," Economic Journal, Royal Economic Society, vol. 96(384), pages 1011-1034, December.
    13. Charles-A. Darveau & Raul K. Suarez & Russel D. Andrews & Peter W. Hochachka, 2002. "Allometric cascade as a unifying principle of body mass effects on metabolism," Nature, Nature, vol. 417(6885), pages 166-170, May.
    14. Bose, Gautam, 1997. "Nutritional efficiency wages: a policy framework," Journal of Development Economics, Elsevier, vol. 54(2), pages 469-478, December.
    15. Stiglitz, Joseph E, 1976. "The Efficiency Wage Hypothesis, Surplus Labour, and the Distribution of Income in L.D.C.s," Oxford Economic Papers, Oxford University Press, vol. 28(2), pages 185-207, July.
    16. Solow, Robert M., 1979. "Another possible source of wage stickiness," Journal of Macroeconomics, Elsevier, vol. 1(1), pages 79-82.
    17. Jayanth R. Banavar & Amos Maritan & Andrea Rinaldo, 1999. "Size and form in efficient transportation networks," Nature, Nature, vol. 399(6732), pages 130-132, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Carl-Johan Dalgaard & Holger Strulik, 2015. "The physiological foundations of the wealth of nations," Journal of Economic Growth, Springer, vol. 20(1), pages 37-73, March.
    2. Prettner, Klaus & Bloom, David E. & Strulik, Holger, 2013. "Declining fertility and economic well-being: Do education and health ride to the rescue?," Labour Economics, Elsevier, vol. 22(C), pages 70-79.
    3. Price, Gregory N., 2013. "The allometry of metabolism and stature: Worker fatigue and height in the Tanzanian labor market," Economics & Human Biology, Elsevier, vol. 11(4), pages 515-521.
    4. Marco Guerrazzi, 2020. "Efficiency-Wage Competition: What Happens as the Number of Players Increases?," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 6(1), pages 13-35, March.
    5. Strulik, Holger & Trimborn, Timo, 2014. "Natural disasters and macroeconomic performance: The role of residential investment," University of Göttingen Working Papers in Economics 194 [rev.], University of Goettingen, Department of Economics.
    6. Kaushal, Kaushalendra Kumar, 2014. "Pathway from nutrition intake to wage among elementary workers in India," MPRA Paper 56652, University Library of Munich, Germany.
    7. Holger Strulik & Timo Trimborn, 2019. "Natural Disasters and Macroeconomic Performance," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 72(4), pages 1069-1098, April.
    8. Juliet Elu & Gregory Price, 2013. "Ethnicity as a Barrier to Childhood and Adolescent Health Capital in Tanzania: Evidence from the Wage-Height Relationship," African Development Review, African Development Bank, vol. 25(1), pages 1-13.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dalgaard, Carl-Johan & Strulik, Holger, 2008. "A Bioeconomic Foundation for the Nutrition-based Efficiency Wage Model," Hannover Economic Papers (HEP) dp-396, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    2. Thomas M. Steger, 2000. "Productive Consumption and Growth in Developing Countries," Review of Development Economics, Wiley Blackwell, vol. 4(3), pages 365-375, October.
    3. Owen O'Donnell & Eddy Van Doorslaer & Tom Van Ourti, 2013. "Health and Inequality," Tinbergen Institute Discussion Papers 13-170/V, Tinbergen Institute.
    4. Raghbendra Jha & Raghav Gaiha & Anurag Sharma, 2005. "Poverty Nutrition Trap in Rural India," Departmental Working Papers 2005-02, The Australian National University, Arndt-Corden Department of Economics.
    5. Ayalew, Tekabe, 2003. "Nutrition-productivity link and the persistence of poverty," IOB Discussion Papers 2003.02, Universiteit Antwerpen, Institute of Development Policy (IOB).
    6. Aysit Tansel & Ceyhan Ozturk & Erkan Erdil, 2021. "The Impact of Body Mass Index on Growth, Schooling, Productivity, and Savings: A Cross-Country Study," Koç University-TUSIAD Economic Research Forum Working Papers 2118, Koc University-TUSIAD Economic Research Forum.
    7. Konstantinos Chatzimichael & Margarita Genius & Vangelis Tzouvelekas, 2015. "Health-Damaging Inputs, Workers' Health Status and Productivity Measurement," Working Papers 1505, University of Crete, Department of Economics.
    8. Kaushal, Kaushalendra Kumar, 2014. "Pathway from nutrition intake to wage among elementary workers in India," MPRA Paper 56652, University Library of Munich, Germany.
    9. Jha, Raghbendra & Gaiha, Raghav & Sharma, Anurag, 2009. "Calorie and Micronutrient Deprivation and Poverty Nutrition Traps in Rural India," World Development, Elsevier, vol. 37(5), pages 982-991, May.
    10. Schultz, T. Paul, 2005. "Productive Benefits of Health: Evidence from Low-Income Countries," IZA Discussion Papers 1482, Institute of Labor Economics (IZA).
    11. Paul Schultz, T., 2003. "Wage rentals for reproducible human capital: evidence from Ghana and the Ivory Coast," Economics & Human Biology, Elsevier, vol. 1(3), pages 331-366, December.
    12. Raghbendra Jha & Katsushi S. Imai & Raghav Gaiha, 2014. "Poverty nutrition traps," Chapters, in: Raghbendra Jha & Raghav Gaiha & Anil B. Deolalikar (ed.), Handbook on Food, chapter 10, pages 246-259, Edward Elgar Publishing.
    13. Raghbendra Jha & Raghav Gaiha & Anurag Sharma, 2006. "Calorie Deprivation and Poverty Nutrition Trap in Rural India," ASARC Working Papers 2006-02, The Australian National University, Australia South Asia Research Centre.
    14. repec:eee:labchp:v:3:y:1999:i:pb:p:2859-2939 is not listed on IDEAS
    15. Jha, Raghbendra & Gaiha, Raghav & Pandey, Manoj K., 2013. "Body Mass Index, participation, duration of work and earnings under the National Rural Employment Guarantee Scheme: Evidence from Rajasthan," Journal of Asian Economics, Elsevier, vol. 26(C), pages 14-30.
    16. Konstantinos Chatzimichael & Margarita Genius & Vangelis Tzouvelekas, 2017. "Health-Damaging Inputs, Workers Health Status and Productivity Measurement," Working Papers 1701, University of Crete, Department of Economics.
    17. Aziz, Fahima, 1995. "Nutrition, Health And Labor Productivity Analysis Of Male And Female Workers: A Test Of The Efficiency Wage Hypothesis," Bulletins 12973, University of Minnesota, Economic Development Center.
    18. Dasgupta, Partha, 1997. "Nutritional status, the capacity for work, and poverty traps," Journal of Econometrics, Elsevier, vol. 77(1), pages 5-37, March.
    19. Hiroaki Hayakawa, 2017. "Health-conscious consumer behavior," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 7(1), pages 1-31, April.
    20. Liu, Gordon G. & Dow, William H. & Fu, Alex Z. & Akin, John & Lance, Peter, 2008. "Income productivity in China: On the role of health," Journal of Health Economics, Elsevier, vol. 27(1), pages 27-44, January.
    21. Garance Genicot, 2005. "Malnutrition and Child Labor," Scandinavian Journal of Economics, Wiley Blackwell, vol. 107(1), pages 83-102, March.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:oxecpp:v:63:y:2011:i:2:p:232-253. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://academic.oup.com/oep .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.