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Efficiency wage

In labor economics, an efficiency wage is a wage paid in excess of the market-clearing wage to increase the labor productivity of workers. Specifically, it points to the incentive for managers to pay their employees more than the market-clearing wage to increase their productivity or to reduce the costs associated with employee turnover.

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Overview

Overview of theory

Shirking

Labor turnover

Selection

Sociological models

Empirical literature

Mathematical explanation

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Map overview Semantic statistics

Efficiency wage

Nodes50
Edges49
Triples75
Avg. degree1.96
Density0.04
Components1

How this topic connects Entity context

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Efficiency wage

Top relations

related to Empirical literature · 17
Efficiency wage → By, Concerns, Fehr, Ford, Ford’s, Given, Gächter, Henry Ford’s, It, Kirchler, Rae, Raff, Summers, Their, There, They, Weichbold
related to References · 16
Efficiency wage → Akerlof, Cambridge, Cambridge University Press, Efficiency Wage Models, Efficiency Wages, Ekkehart, George, Implications, ISBN, IZA World, Janet, Labor, Labor Market, Schlicht, Variants, Yellen
related to overview · 13
Efficiency wage → Akerlof's, Avoiding, By, Efficiency, If, In, Minimizing, Nutritional, Selection, Sociological, The, There, This
related to Sociological efficiency wage models · 12
Efficiency wage → Akerlof, Dickens, In Akerlof's, Katz, Krueger, Slichter, Solow, Summers, The, This, Using, Yellen
related to Labor turnover · 6
Efficiency wage → Again, If, Labor, These, This, With
related to Mathematical explanation · 6
Efficiency wage → Accordingly, If, Paul Krugman, The, Then, Under
is a · 1
Efficiency wage → wage paid in excess of the market-clearing wage to increase the labor productivity of workers

Important terminology Word statistics

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Important terminology

wage workers wages firms efficiency may unemployment work shirking productivity model labor higher market increase fairness turnover effort employees equilibrium

Entity relationships Subject–Predicate–Object triples

SubjectPredicateObjectConfidenceSrc
Efficiency wageis awage paid in excess of the market-clearing wage to increase the labor productivity of workers0.90text
piece rates are often impracticable because monitoring is too costly or inaccurateinstance ofMethods0.80text
shirkinginstance ofperhaps because they are in short supply or for other efficiency-wage reasons0.80text
high turnoverinstance ofConcerns0.80text
poor worker morale appear to have played an important role in the five-dollar decisioninstance ofConcerns0.80text
Efficiency wagerelated to Empirical literatureRaff0.60section
Efficiency wagerelated to Empirical literatureSummers0.60section
Efficiency wagerelated to Empirical literatureHenry Ford’s0.60section
Efficiency wagerelated to Empirical literatureTheir0.60section
Efficiency wagerelated to Empirical literatureFord0.60section
Efficiency wagerelated to Empirical literatureFord’s0.60section
Efficiency wagerelated to Empirical literatureConcerns0.60section

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