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Simple Test of the Efficiency Wage Hypothesis - A Note
Gerlach, Knut | Stephan, Gesine
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 114 (1994), Iss. 3 : pp. 337–344
The basic idea of the proposed test of the efficiency wage hypothesis is, that wage premiums, i.e. the residuals of the wage equations, predict which workers will be reluctant to quit, are not strictly supervised and work at jobs which are not monotonous and require their participation in decision-making. With the data from the German-Socio-Economic Panel evidence is found that workers who receive wage premiums are less likely to quit and exit from the labor market and are more likely to perform in autonomous work settings. This is in accordance with the efficiency wage hypothesis.
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|Knut Gerlach/Gesine Stephan: A Simple Test of the Efficiency Wage Hypothesis -\rA Note||337|