TY - JOUR
T1 - Labor Productivity in the Efficiency-Wage Model
T2 - A Consideration of the Firm's Death Rate
AU - Huang, Li Hsuan
N1 - Funding Information:
The author would like to thank Joseph Jaffey and the participants of seminars at several universities for their comments. Thanks are also due to two anonymous referees for their helpful comments. Appreciation of the National Science Council of the Republic of China is acknowledged for financially supporting this research project under contract no. NSC86-2415-H-008-002.
PY - 2000
Y1 - 2000
N2 - It is inappropriate to equate the "representative firm" with the typical firm, particularly for economies which consist of small enterprises where a large number of jobs are created or disappear as establishments are born or die. If workers care about the job disappearance risk, their utility and effort offered will be influenced by the death rate of firms. This paper sets out an efficiency-wage model and takes the probability of the firm's closure into account. By extension, it is shown that equilibrium labor productivity is plausibly procyclical under certain circumstances, which is consistent with the stylized facts observed in many countries.
AB - It is inappropriate to equate the "representative firm" with the typical firm, particularly for economies which consist of small enterprises where a large number of jobs are created or disappear as establishments are born or die. If workers care about the job disappearance risk, their utility and effort offered will be influenced by the death rate of firms. This paper sets out an efficiency-wage model and takes the probability of the firm's closure into account. By extension, it is shown that equilibrium labor productivity is plausibly procyclical under certain circumstances, which is consistent with the stylized facts observed in many countries.
UR - http://www.scopus.com/inward/record.url?scp=0034409635&partnerID=8YFLogxK
U2 - 10.1023/A:1008115601139
DO - 10.1023/A:1008115601139
M3 - 期刊論文
AN - SCOPUS:0034409635
SN - 0921-898X
VL - 14
SP - 149
EP - 155
JO - Small Business Economics
JF - Small Business Economics
IS - 2
ER -
