Ludwig-Maximilians-Universität München, and IZA, Germany
IZA World of Labor role
Professor of Economics, Ludwig-Maximilians-Universität München, Germany
Labour economics, institutional economics, and methods
Professor of Economics, Technical University Darmstadt, 1980–1993; Professor of Economics, University of Bielefeld, 1976–1980; Fellow, Institute for Advanced Study, Princeton, 1985–1986
Doctorate in Economics, University of Regensburg, 1971
Isolation and Aggregation in Economics. Berlin: Springer-Verlag, 1985.On Custom in the Economy. Oxford: Clarendon Press,1998.
“A neoclassical theory of wealth distribution.” Jahrbücher für Nationalökonomie und Statistik 189:1/2 (1975): 78–96.
“Labour turnover, wage structure, and natural unemployment.” Zeitschrift für die gesamte Staatswissenschaft 134:2 (1978): 337–364.
“Wage dispersion, over-qualification, and Reder competition.” Economics 1 (2007): 1–31.
Efficiency wages: Variants and implications
Wages affect productivity and non-wage costs; this carries important labor market and policy implicationsEkkehart Schlicht, July 2016Higher wages increase labor costs but also improve the productivity of the labor force in several ways. If firms take this into account and set their wages accordingly, the resulting wages could fail to adjust demand and supply but may induce phenomena like over-education, discrimination, regional wage differentials, and a tendency for larger firms to pay higher wages. All these phenomena are quantitatively important and well-established empirically. Efficiency wage theory provides an integrated theoretical explanation rather than a sundry list of reasons, and offers an efficiency argument for progressive income taxation.MoreLess