Efficiency Wage in the Frictional Labour Market- A Theoretical Analysis

Bandopadhyay, Titas Kumar (2014): Efficiency Wage in the Frictional Labour Market- A Theoretical Analysis.

Abstract

In this paper we introduce efficiency wage relation in the benchmark model of DMP where worker’s efficiency depends on the wage rate and the labour market tightness. We also examine the parametric effects on the Nash-wage rate, market tightness and on the equilibrium unemployment rate. Our results show that all the results obtained in this paper are identical to those obtained in the original DMP model.

• Item Type: MPRA Paper
• Language: English
• Keywords: Efficiency wage, job destruction
• Subjects: J - Labor and Demographic Economics > J2 - Demand and Supply of Labor; J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J20 - General; J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J24 - Human Capital ; Skills ; Occupational Choice ; Labor Productivity

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