Contemporary Labor Economics课件.ppt

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Wage-Productivity Dependency A higher wage may increase worker productivity by: Increasing employee work effort Improving worker capabilities Increasing the proportion of skilled workers in the workforce An efficiency wage is one that minimizes an employer’s wage cost per effective unit of labor employed. The marginal benefit of a higher wage equals the marginal cost of the higher wage. Efficiency Wage Theories Shirking model Paying an above-market wage will increase the relative wage of the job. This raises the opportunity cost of being terminated for shirking. Workers increase their effort (productivity) in response to this higher opportunity cost. Labor turnover model Firms increase wage to reduce turnover. The lower turnover increases productivity since more experienced workers don’t quit as often. Non-Clearing Markets Suppose a firm finds it can lower its effective cost per unit of labor by increasing the wage rate from W1 to W2. The lower cost is the result of increased productivity of the workers. This reflected in a rightward shift in the labor demand curve from D1 to D2. Though W2 is an equilibrium wage, it results in a labor surplus of BC and is not the market clearing wage. The unemployment of BC workers generates part of the productivity gain since the threat of unemployment encourages workers not to shirk. D2 W2 Q1 W1 D1 Quantity of Labor Hours Wage rate S A B Q2 C Criticisms Alternatives to efficiency wages exist such as piece rates and commissions. Workers could post a bond they would forfeit if they were found negligent. Employers could reduce shirking by deferring part of worker’s pay. Questions for Thought 1. Speculate on what actions workers might take to resolve a free-rider problem. 2. People often sell goods (or raffle tickets) as part of a fundraising project. These projects typically offer valuable prizes to those who sell over a fixed number of units. Often