A simple test of the efficiency wage hypothesis

Abstract

"The basic 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." (Author's abstract, IAB-Doku) ((en))

Cite article

Gerlach, K. & Stephan, G. (1994): A simple test of the efficiency wage hypothesis. A note. In: Zeitschrift für Wirtschafts- und Sozialwissenschaften, Vol. 114, No. 3, p. 337-344.