One of the more troubling aspects of the ferment in macroeconomics that followed the demise of the Keynesian dominance in the late 1960s has been the inability of many of the new ideas to account for unemployment remains unexplained because equilibrium in most economic models occurs with supply equal to demand: if this equality holds in the labor market, there is no involuntary unemployment. Efficiency Wage Models of the Labor Market explores the reasons why there are labor market equilibria with employers preferring to pay wages in excess of the market-clearing wage and thereby explains involuntary unemployment. This volume brings together a number of the important articles on efficiency wage theory. The collection is preceded by a strong, integrative introduction, written by the editors, in which the hypothesis is set out and the variations, as described in subsequent chapters, are discussed.

The contributors explore the reasons why involuntary unemployment happens when supply equals demand.

Book Information
ISBN 9780521312844
Author George A. Akerlof
Format Paperback
Page Count 192
Imprint Cambridge University Press
Publisher Cambridge University Press
Weight(grams) 300g
Dimensions(mm) 229mm * 152mm * 11mm