WORKER QUALITY

WORKER QUALITY A third type of efficiency-wage theory emphasizes the link between wages and worker quality. All firms want workers who are alimented, and they try to pick the best applicants to fill job openings. But because firms cannot perfectly gauge the quality of...

WORKER TURNOVER

WORKER TURNOVER A second-type of efficiency-wage theory emphasizes the link between wages and worker turnover. Workers I quit jobs for many reasons: to take jobs in other firms, to move to other parts of the country, to leave the labor force, and so on. The frequency...

WORKER HEALTH

WORKER HEALTH The first and simplest type emphasizes the link between wages and worker health. Better paid workers eat a more nutritious diet, and workers who eat a better diet are healthier and more productive. A firm may find it more profitable to pay high wages and...

THE THEORY OF EFFICIENCY WAGES

THE THEORY OF EFFICIENCY WAGES. A fourth reason economies always experience some unemployment-in addition to job search, minimum wage laws, and unions-is suggested by the theory of efficiency wages. According to this theory, firms operate more efficiently if wages are...

Should You Join a Union .

Should You Join a Union . Someday you may face the decision about whether to vote for or against a union in your workplace The following article discusses some issues you might consider. On Payday, Union Jobs Stack Up Very Well With the teamsters’ success in...

ARE UNIONS GOOD OR BAD FOR THE ECONOMY

ARE UNIONS GOOD OR BAD FOR THE ECONOMY Economists disagree about whether unions are good or bad for the economy as a whole. Let’s consider both sides of the debate Critics argue that unions are merely a type of cartel. When unions raise wages above the level...