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The efficiency wage hypothesis and the role of corporate governance in firm performance

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  • DiGabriele, Jim
  • Ojo, Marianne

Abstract

As well as a two-fold contribution to the literature as highlighted in their paper“, Financial Disruptions and the Cyclical Upgrading of Labor” (2017:8), and elaborated on by Epstein et al, the reconciliation of two quantitative limitations of current general equilibrium theories constituting part of such contribution, this paper highlights the need to incorporate other theories such as those relating to the economics of the firm – in explaining firm performance – given the previously highlighted limitations of “canonical models”. The inability to account for variables which are independent of exogenously or endogenously determined factors and which are outside their model, also necessitates the incorporation of other theories and factors to be taken into account in arriving at more accurate conclusions which determine firm performance.

Suggested Citation

  • DiGabriele, Jim & Ojo, Marianne, 2017. "The efficiency wage hypothesis and the role of corporate governance in firm performance," MPRA Paper 80710, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:80710
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    References listed on IDEAS

    as
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    2. Yellen, Janet L, 1984. "Efficiency Wage Models of Unemployment," American Economic Review, American Economic Association, vol. 74(2), pages 200-205, May.
    3. Brendan Epstein & Alan Finkelstein Shapiro & Andres Gonzalez Gomez, 2017. "Online Appendix to "Financial Disruptions and the Cyclical Upgrading of Labor"," Online Appendices 15-250, Review of Economic Dynamics.
    4. Auer, Raphael A. & Degen, Kathrin & Fischer, Andreas M., 2013. "Low-wage import competition, inflationary pressure, and industry dynamics in Europe," European Economic Review, Elsevier, vol. 59(C), pages 141-166.
    5. George A. Akerlof, 1982. "Labor Contracts as Partial Gift Exchange," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 97(4), pages 543-569.
    6. Brendan Epstein & Alan Finkelstein Shapiro & Andres Gonzalez Gomez, 2017. "Financial Disruptions and the Cyclical Upgrading of Labor," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 26, pages 204-224, October.
    7. Auer, Raphael & Fischer, Andreas M., 2010. "The effect of low-wage import competition on U.S. inflationary pressure," Journal of Monetary Economics, Elsevier, vol. 57(4), pages 491-503, May.
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    10. Ojo, Marianne, 2006. "Eliminating the Audit Expectations Gap : Myth or Reality?," MPRA Paper 232, University Library of Munich, Germany, revised Sep 2006.
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    Keywords

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    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • G2 - Financial Economics - - Financial Institutions and Services
    • G3 - Financial Economics - - Corporate Finance and Governance
    • M4 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting

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