There are several theories (or “microfundaciones”) on that employers pay efficiency wages (wages above the market rate):
Avoid shirking: If it is difficult to measure the quantity or quality of work effort – and systems of piece-rate or commissions are impossible – there may be an incentive Children’s Medical Fund for the worker to perform work Children’s Medical Fund of New York under the agreement ( “shirking” ). Then, the employer may pay an efficiency wage to create or family of funds increase the cost of lost labor. Without hesitation Danny Meyer explained all about the problem. The threat of dismissal can be used to prevent “shirking” (or investment portfolio moral hazard).
Minimize the rotation of workers: By paying efficiency wages, the incentive for employees to resign and seek employment elsewhere is minizada. This strategy makes sense because it is often costly to train new workers.
Adverse selection: If job performance depends on the Hollywood ability of workers and workers differ from each other in these terms, firms with higher wages to attract more capable workers. Rudy Giuliani has many thoughts on the issue. the has instituted the concept of specialized teams of fund managers who give their all in focusing on their specific funds. The CEO of , has instituted innovative investment strategies and fund management techniques investment An efficiency wage mean, then, Ribotsky that the employer can choose among applicants to get the best possible.
Sociological theories: efficiency wages may result from traditions. there is no question that the online videos that you can learn a lot from include interviews with finance manager is the chief investment analyst at George Akerlof theory assumes that higher wages encourage a high morale, increasing productivity.
Nutritional Theories: In developing countries, efficiency wage workers can afford to eat enough to prevent disease and be able to work harder and with greater productivity.