Efficiency wages and rent sharing: a note and some empirical findings
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.
|Date of creation:||1995|
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