Efficiency wage (and slavery) efficiency: in theory and in time

Saccal, Alessandro (2021): Efficiency wage (and slavery) efficiency: in theory and in time.

Abstract

The formal differentiation of (i) pain incentives from ordinary rewards, (ii) of effortful from careful production and (iii) of diligent from slothful workers under labour market imperfect competition ultimately suggests that the optimal menu of contracts associates inducements to production kinds following the preference triggered by slothful workers: effortful production with pain incentives and careful production with ordinary rewards. The efficiency of the efficiency wage as interpreted by the sociological theory is therefore discerned to arise under a particular production kind and so is that of slavery its dual (undoubtedly illicit). More broadly, the confusion of the two production kinds under market and state capitalism respectively contributes to the Phillips curve and price rigidity, in the misapplication of ordinary rewards to effortful production. State capitalism jurisprudentially eliminates the risks of dismissal and redundancy and thereby lastly causes effortful production to enter stagnation.

• Item Type: MPRA Paper
• Language: English
• Keywords: care; diligence; efficiency; effort; pain; production; rewards; scourging; slavery; sloth; wages.
• Subjects: D - Microeconomics > D0 - General > D02 - Institutions: Design, Formation, Operations, and Impact; D - Microeconomics > D2 - Production and Organizations > D24 - Production ; Cost ; Capital ; Capital, Total Factor, and Multifactor Productivity ; Capacity; D - Microeconomics > D4 - Market Structure, Pricing, and Design > D41 - Perfect Competition; D - Microeconomics > D4 - Market Structure, Pricing, and Design > D42 - Monopoly; D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D86 - Economics of Contract: Theory; E - Macroeconomics and Monetary Economics > E1 - General Aggregative Models > E11 - Marxian ; Sraffian ; Kaleckian; E - Macroeconomics and Monetary Economics > E1 - General Aggregative Models > E12 - Keynes ; Keynesian ; Post-Keynesian; E - Macroeconomics and Monetary Economics > E1 - General Aggregative Models > E13 - Neoclassical; E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E23 - Production; E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E31 - Price Level ; Inflation ; Deflation; E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E32 - Business Fluctuations ; Cycles; J - Labor and Demographic Economics > J4 - Particular Labor Markets > J41 - Labor Contracts; N - Economic History > N2 - Financial Markets and Institutions > N20 - General, International, or Comparative; N - Economic History > N3 - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy > N30 - General, International, or Comparative; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O43 - Institutions and Growth; P - Economic Systems > P1 - Capitalist Systems > P10 - General; P - Economic Systems > P2 - Socialist Systems and Transitional Economies > P20 - General; P - Economic Systems > P2 - Socialist Systems and Transitional Economies > P22 - Prices; P - Economic Systems > P3 - Socialist Institutions and Their Transitions > P30 - General; P - Economic Systems > P3 - Socialist Institutions and Their Transitions > P37 - Legal Institutions ; Illegal Behavior; P - Economic Systems > P5 - Comparative Economic Systems > P51 - Comparative Analysis of Economic Systems; P - Economic Systems > P5 - Comparative Economic Systems > P52 - Comparative Studies of Particular Economies

References

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