What is an efficiency wage? How might payment of an above-market wage reduce shirking by employees and

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What is an efficiency wage? How might payment of an above-market wage reduce shirking by employees and reduce worker turnover? How might efficiency wages contribute to downward wage inflexibility, at least for a time, when aggregate demand declines?

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Economics

ISBN: 978-0073375694

18th edition

Authors: Campbell R. McConnell, Stanley L. Brue, Sean M. Flynn

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Question Posted: May 23, 2013 07:57 AM

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What is an efficiency wage? How might payment of an above-market wage reduce shirking by employees and

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An efficiency wage is one that minimizes the firms labor cost per unit of output Normally we could a...View the full answer

Economics

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