Efficiency wages and rent sharing: a note and some empirical findings

Francis Teal

No 1995-17, CSAE Working Paper Series from Centre for the Study of African Economies, University of Oxford

Abstract: Tests for the efficiency wages hypothesis have proposed to use production functions to ask if wages increase can pay for themselves. Tests for rent sharing have used a profit term in the earings function. In this note the relationship between these tests is investigated empirically. Evidence is presented for the Ghana manufacturing sector which allows a test discriminating between the two hypotheses to be conducted.

Keywords: Labour Markets; Rent sharing; Efficiency wages; Developing countries (search for similar items in EconPapers)
JEL-codes: J30 O55 (search for similar items in EconPapers)
Date: 1995
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