IDEAS home Printed from
MyIDEAS: Login to save this article or follow this journal

Did Henry Ford Pay Efficiency Wages?

  • Raff, Daniel M G
  • Summers, Lawrence H

The authors examine Henry Ford's introduction of the five-dollar day in 1914 in an effort to evaluate the relevance of efficiency-wag e theories of wage and employment determination. They conclude that t he Ford experience strongly supports the relevance of these theories. Ford's decision to increase wages dramatically is most plausibly the consequence of labor problems of the kind efficiency-wage theorists stress. The structure of the five-dollar day program is consistent wi th the predictions of efficiency-wage theories. There is vivid eviden ce that the introduction of the five-dollar day resulted in substanti al queues for Ford jobs. Significant increases in Ford productivity a nd profits accompanied the new regime. Copyright 1987 by University of Chicago Press.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
File Function: full text
Download Restriction: Access to full text is restricted to JSTOR subscribers. See for details.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 5 (1987)
Issue (Month): 4 (October)
Pages: S57-86

in new window

Handle: RePEc:ucp:jlabec:v:5:y:1987:i:4:p:s57-86
Contact details of provider: Web page:

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:ucp:jlabec:v:5:y:1987:i:4:p:s57-86. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Journals Division)

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.