@article{Efficiency:649,
      recid = {649},
      author = {Fisher, Timothy C. G.},
      title = {Efficiency Wages: A Literature Survey},
      publisher = {Bank of Canada},
      address = {1989},
      pages = {1 online resource (53 pages)},
      abstract = {Recently developed models based on a concept known as the  efficiency wage hypothesis claim to have provided an  explanation of persistent unemployment and rigid wages. The  hypothesis states that labour productivity depends  positively on the wage rate. If this is the case, firms may  not reduce wages, even in the presence of unemployment,  since reducing wages may actually increase labour costs  through decreased productivity. This paper reviews both the  theoretical models explaining a positive relationship  between wages and productivity and empirical tests of the  theory. Several literature reviews of the efficiency wage  theory are currently available, but this survey focuses  attention on the macroeconomic implications of the theory  and reviews, for the first time, many empirical studies  based on efficiency wage theory.},
      url = {http://www.oar-rao.bank-banque-canada.ca/record/649},
      doi = {https://doi.org/10.34989/swp-1989-5},
}