Publication
Title
The efficiency wages perspective to wage rigidity in the open economy: a survey
Author
Abstract
Purpose The purpose of the paper was to establish the implications of globalisation for labour markets when efficiency wages create endogenous wage rigidity and to re-examine the credibility of the arguments that call for deregulation, more wage flexibility and less social protection in this context. Design/methodology/approach The role of efficiency wages is reviewed in the traditional international economics theory, new economic geography and the neo-Schumpeterian perspective towards international competitiveness. Findings First, taking into account endogenous sources of wage rigidity has different implications for employment, inequality, regional growth convergence and the role of the welfare state in the context of international competitiveness, from those derived when assuming them away or taking them as imposed by labour market institutions. Second, policies that would substantially reduce social security or lead to cost-cuts may have an adverse effect on effort and thus on productivity. Originality/value To the authors knowledge, this paper is the only review in the literature that concentrates
Language
English
Source (journal)
International journal of manpower. - Bingley
Publication
Bingley : 2011
ISSN
0143-7720
Volume/pages
32:3(2011), p. 273-299
ISI
000293935000003
Full text (Publisher's DOI)
Full text (publisher's version - intranet only)
UAntwerpen
Faculty/Department
Research group
Publication type
Subject
Affiliation
Publications with a UAntwerp address
External links
Web of Science
Record
Identification
Creation 14.07.2011
Last edited 15.07.2017
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