Efficiency wage setting, labor demand, and Phillips curve microfoundations

Carl Campbell ()

MPRA Paper from University Library of Munich, Germany

Abstract: This study demonstrates that a model with efficiency wages and imperfect information produces a Phillips curve relationship. Equations are derived for labor demand and the efficiency wage-setting condition, and shifts in these curves in response to aggregate demand shocks result in a relationship with the characteristics of a Phillips curve. The Phillips curve differs from the efficiency wage-setting condition in that the Phillips curve is a more parsimonious expression and has a coefficient on expected inflation equal to 1. Also derived from this model is the counterpart curve to the Phillips curve in unemployment – inflation space.

Keywords: Phillips curve; Efficiency wages; Imperfect information (search for similar items in EconPapers)
JEL-codes: E24 E31 (search for similar items in EconPapers)
Date: 2011-10-14
New Economics Papers: this item is included in nep-cba, nep-cis, nep-lab and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/34121/1/MPRA_paper_34121.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/74910/1/MPRA_paper_74910.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/74984/1/MPRA_paper_74984.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/49196/1/MPRA_paper_49196.pdf revised version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:34121

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().