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Firm's pricing policy and efficiency wages

Mikael Linden

Applied Economics Letters, 1998, vol. 5, issue 12, 781-784

Abstract: The basic efficiency wage model is analysed with real wages and cost pricing firm. The Solow condition implies that the effort wage output price elasticity is zero. Some empirical evidence from the US crude petroleum and natural gas industry and a sample of Finnish manufacturing industries does not reject this result.

Date: 1998
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DOI: 10.1080/135048598354023

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