Talk:Bestiary of Behavioral Economics/Efficiency Wages

Another efficiency wage reference
I haven't looked beyond the abstract yet, but... This looks at efficiency wages and backward-bending labor supply. TDang (discuss • contribs)

Another good source for efficiency wages is the sorta-popular book Animal Spirits by Akerlof and Schiller. It discusses two stories behind the efficiency wage. There's particularly good stuff starting on page 104, which can be seen here. TDang (discuss • contribs) 21:48, 21 October 2011 (UTC)

Some thoughts for further editing efficiency wage and fair wage

 * 1) I haven't found why fair wage model is better to explain wage compression, negative correlation between unemployment and skill, and the strong positive correlation between industry profits and industry wage. What I read was simple written explanations rather than explicit and detailed ones with graphs.
 * 2) I found that there are five sub-models in the family of efficiency wage model (Shirking Models, Gift-Exchange Model, Fair Wage-effort Model, Adverse Selection Model, and Turnover Model). It's a good direction to explore.
 * 3) Applications of fair wage model is a potential way to discover the core of fair wage-effort model. I haven't found many good applications. Associating reality with the fair wage model is a good way to provide viewers an interesting picture. Pay attention to math part because it is difficult to understand with only number, function, and simple explanation. As a result, I think it is better to reinterpret them into more readable version.
 * 4) continue to trim and polish my edit
 * 5) Lastly, it is good to relate the fair wage fair current cases. Most I found is from 80s and 90s.

Note: These thoughts are from Banglong Zhu

math on page
In reference to this link above on efficiency wages, I was curious as to whether having mathematical equations was important for this Wikibook. According to my understanding, the book was supposed to be almost exclusively qualitative not quantitative. I was wondering if I could change this page by explaining the equations instead of listing them. If any of you guys had any thoughts on this let me know. Nicholas Petsas Npetsas (discuss • contribs) 20:45, 31 January 2012 (UTC)


 * I think that math at the level of intermediate economics is appropriate for this book, and may be needed for some topics to be really clear. I'd suggest that you leave the math for the moment, and explain them in addition. TDang (discuss • contribs) 21:10, 31 January 2012 (UTC)

Ford's $5 Wage
I think that when talking about efficeincy wages it is only appropriate to bring up Ford's famous five dollar wage. His wage is historically considered one of the first and paramount examples of efficiency wages. So I was wondering if you knew of any good literature on the subject that would be appropriate to cite in this section. Also I was wondering if it was worthwhile to add to the "relative deprivation theory" or if the one sentence describing it was adequate. Also, the equations as they stand, though explained better than I had originally thought, are not visually appealing nor are they easy to grasp. is there a way to change it to how some equations appear on wikipedia? Npetsas (discuss • contribs) 06:42, 24 February 2012 (UTC)