English, Article, Journal or magazine article edition: The Wage-Productivity Hypothesis: Its Economic Consequences and Policy Implications. Joseph E. Stiglitz

User activity

Share to:
 
Bookmark: http://trove.nla.gov.au/version/141360
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • The Wage-Productivity Hypothesis: Its Economic Consequences and Policy Implications.
Author
  • Joseph E. Stiglitz
Physical Description
  • preprint
Notes
  • This paper explores the implications for less developed countries o the hypothesis that workers' productivity depends on the wages they receive. In particular, we show that this hypothesis may explain the high urban wages and unemployment found in many such countries. The market equilibrium is shown not to be pareto efficient. If the government could not control urbaxv'rural migration, but could control wages and urban employment, it would, in general, set wages and employment levels differently. The sources of Inefficiency are identified. The (constrained) pareto optimal policy can be implemented via taxes and subsidies; but two instruments (both specific and ad valorern wage tax/​subsidies) are required. More generally, policy changes will affect both the urban wage and the level of unemployment, and these consequences need to be taken into accounce, both In the determination of shadow wages to be used in cost benefit analysis and In the analysisis of the incidence of any set of taxes and subsIdIes. The shadow price of labor may differ markedly from what it would be if wages were arbitrarily fixed and there were no migration. In particular, in the special case of the Harris-Todaro migration model, with fixed rural wages and productivity depending only on the absolute wage received, the shadow wage is the market wage, regardless of the relative evaluation of current and future consumption. Shadow prices under other specifications of the wage-productlvlty relationship are analyzed.
  • RePEc:nbr:nberwo:1976
Language
  • English
Contributed by
OAIster

Get this edition

Other links

  • Set up My libraries

    How do I set up "My libraries"?

    In order to set up a list of libraries that you have access to, you must first login or sign up. Then set up a personal list of libraries from your profile page by clicking on your user name at the top right of any screen.

  • All (1)
  • Unknown (1)
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.

User activity


e.g. test cricket, Perth (WA), "Parkes, Henry"

Separate different tags with a comma. To include a comma in your tag, surround the tag with double quotes.

Be the first to add a tag for this edition

Be the first to add this to a list

Comments and reviews

What are comments? Add a comment

No user comments or reviews for this version

Add a comment