Efficiency Wage Theories

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Assignment – Suggested Format

· Introduction

• Consider a specific industry, with one or two actual companies as examples

• The industry’s current deficiency in paying for performance

• Your solution

– Performance evaluation, Lazear & Gibbs: Personnel Economics in Practice

– Paying for performance, Lazear &Gibbs

– include labour supply, labour demand theories, as well as human capital concepts

– include recruitment and managing turnover concepts

– Efficiency wages

· Conclusion

Some Notes: Efficiency wages