We examine a model that blends the neoclassical theory of investment with an intertemporal efficiency wage model with turnover costs. Investment decisions in capital are associated with the allocation of labor and the determination of efficiency wages. The model relates Tobin’s q to efficiency wages and, in particular, to the Solow condition. It provides a general framework to analyze firm’s in...

This paper analyzes the effects of intermediate goods trade on the development of real wages in Central and Eastern European manufacturing. The empirical findings show that world exports in intermediate goods of the CEEC exhibit a negative impact on wages, and imports a positive one. Since 1993, intermediate goods trade between the EU and the CEEC accounted for an increase in wages being most p...

This study investigates the effects of employment protection on wages. The implementation of employment protection legislation increases employers’ firing costs and reduces labor turnover, and thus results in lower wages. Our empirical results show that the implementation of Taiwan’s Labor Standards Law leads to a reduction in wages, the effects of which varies with the stringency of the law’s ...

Servant's wages The following is quoted from proceedings of the 21st May, 1759 Taking into consideration the united complaints of the inhabitants (of Calcutta) with respect not only to the insolence but exorbitant, wages exacted by the menial servants, and having duly weighed and considered the premises, we are of opinion that their complaints are too justly founded and loudly call for redress....

To the Editor: There is ongoing litigation about whether the National Resident Matching Program (NRMP) restrains competition for residents and suppresses wages. 1 Although the legal issues have been discussed in detail, 2,3 the basic economic question is whether a market organized by a match results in lower wages than if there were no match. We compared similar markets for postgraduate medical...

A puzzle has emerged from studies examining the wage effects of sexual orientation for women. Although lesbian and bisexual women face discrimination in the labor market, most studies of the wages of female full-time workers in same-sex couples versus those in different-sex couples find that the lesbians earn more, even controlling for differences in present labor market supply, education, year...

This work investigates the commonly observed relationship between marriage and wages among men in Britain using panel data covering the 1990s. We explicitly test several hypotheses developed in the literature to explain this relationship, including the household division of labour and specialisation, differential rates of human capital formation, employer favouritism, and self-selection. After ...

Local minimum wage laws are becoming common across U.S. cities, and their effects may be different from the effects of state or nationwide minimum wage policies. This paper studies the effect of changes in the minimum wage on spatial equilibriums in local labor markets. Using residence and workplace data for the United States, I analyze how commuting, residence, and employment locations change ...