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A dynamic efficiency wage model with learning by doing

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  • Jellal, Mohamed
  • Zenou, Yves

Abstract

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.

Suggested Citation

  • Jellal, Mohamed & Zenou, Yves, 2000. "A dynamic efficiency wage model with learning by doing," MPRA Paper 38513, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:38513
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    References listed on IDEAS

    as
    1. Pisauro, Giuseppe, 1991. "The effect of taxes on labour in efficiency wage models," Journal of Public Economics, Elsevier, vol. 46(3), pages 329-345, December.
    2. 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.
    3. 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.
    4. Solow, Robert M., 1979. "Another possible source of wage stickiness," Journal of Macroeconomics, Elsevier, vol. 1(1), pages 79-82.
    5. K. J. Arrow, 1971. "The Economic Implications of Learning by Doing," Palgrave Macmillan Books, in: F. H. Hahn (ed.), Readings in the Theory of Growth, chapter 11, pages 131-149, Palgrave Macmillan.
    6. Ramaswamy, Ramana & Rowthorn, Robert E, 1991. "Efficiency Wages and Wage Dispersion," Economica, London School of Economics and Political Science, vol. 58(232), pages 501-514, November.
    7. Schmidt-Sorensen, Jan Beyer, 1990. "The equilibrium effort-wage elasticity in efficiency-wage models," Economics Letters, Elsevier, vol. 32(4), pages 365-369, April.
    8. 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.
    9. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Mohamed Jellal & Francois-Charles Wolff, 2003. "Dual Labor Markets And Strategic Efficiency Wage," International Economic Journal, Taylor & Francis Journals, vol. 17(3), pages 99-112.
    2. François-Charles Wolff & Mohamed Jellal & Khaled Bouabdallah, 2004. "Unemployment and work sharing in an efficiency wage model," Economics Bulletin, AccessEcon, vol. 10(3), pages 1-7.
    3. Jan König & Erkki Koskela, 2013. "The Role of Profit Sharing in Dual Labour Markets with Flexible Outsourcing," LABOUR, CEIS, vol. 27(4), pages 351-370, December.
    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. Jellal, Mohamed, 2014. "Une théorie des relations sociales emploi et inégalité [A theory of social relations jobs and inequality]," MPRA Paper 57512, University Library of Munich, Germany.
    6. Jellal, Mohamed, 2014. "Firmes industrielles incitations et formation approche théorique [Industrial firms incentives and training Policy theoretical approach]," MPRA Paper 57306, University Library of Munich, Germany.
    7. repec:ebl:ecbull:v:10:y:2004:i:3:p:1-7 is not listed on IDEAS
    8. Jellal, Mohamed, 2014. "Agglomeration economies and optimal efficiency wage," MPRA Paper 57836, University Library of Munich, Germany.
    9. Ichiroh Daitoh & Kazuo Nishimura, 2019. "Productive Consumption Hypothesis and a Two-Sector Model of Economic Development," Keio-IES Discussion Paper Series 2019-007, Institute for Economics Studies, Keio University.
    10. Koskela, Erkki & König, Jan, 2010. "Profit Sharing, Wage Formation and Flexible Outsourcing under Labor Market Imperfection," IZA Discussion Papers 4707, Institute of Labor Economics (IZA).
    11. Faria, Joao & Jellal, Mohamed, 2009. "Dynamic of Employment and Wages Incentives," MPRA Paper 17183, University Library of Munich, Germany.
    12. Jellal, Mohamed, 2014. "Social psychology and gender efficiency wage gap," MPRA Paper 57884, University Library of Munich, Germany.
    13. Daitoh, Ichiroh, 2010. "Productive consumption and population dynamics in an endogenous growth model: Demographic trends and human development aid in developing economies," Journal of Economic Dynamics and Control, Elsevier, vol. 34(4), pages 696-709, April.
    14. Faria, Joao & Jellal, Mohamed, 2009. "Industrialization Jobs Creation and Wages Incentives," MPRA Paper 17185, University Library of Munich, Germany.

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    More about this item

    Keywords

    Solow condition; Effort function; Learning;
    All these keywords.

    JEL classification:

    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis

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