TY - JOUR
T1 - Relative Deprivation, Efficiency Wages, and Labor Productivity in Taiwanese Manufacturing Industries
AU - Liu, Jeng
AU - Sakamoto, Arthur
N1 - Publisher Copyright:
© 2005 by Elsevier Ltd.
PY - 2005
Y1 - 2005
N2 - We investigate the effects of relative deprivation and efficiency wages
on labor productivity in manufacturing industries in Taiwan. Using data
from six different years in the period from 1979 to 1995, our results
indicate that – contrary to the usual assumption made by many labor
economists – efficiency wages do not have a net positive effect on labor
productivity. The findings do indicate, however, a substantial negative
effect of relative deprivation. In particular, labor productivity in
Taiwanese manufacturing industries is lower to the extent that their
workers are paid below the national average given their human capital
and demographic characteristics. These results suggest that the wage
structure of an industry does have an important effect on its labor
productivity, but understanding this issue more fully may require that
researchers focus more on relative deprivation.
AB - We investigate the effects of relative deprivation and efficiency wages
on labor productivity in manufacturing industries in Taiwan. Using data
from six different years in the period from 1979 to 1995, our results
indicate that – contrary to the usual assumption made by many labor
economists – efficiency wages do not have a net positive effect on labor
productivity. The findings do indicate, however, a substantial negative
effect of relative deprivation. In particular, labor productivity in
Taiwanese manufacturing industries is lower to the extent that their
workers are paid below the national average given their human capital
and demographic characteristics. These results suggest that the wage
structure of an industry does have an important effect on its labor
productivity, but understanding this issue more fully may require that
researchers focus more on relative deprivation.
UR - http://www.scopus.com/inward/record.url?scp=33645904832&partnerID=8YFLogxK
U2 - 10.1016/S0276-5624(05)23010-X
DO - 10.1016/S0276-5624(05)23010-X
M3 - Journal article
AN - SCOPUS:33645904832
SN - 0276-5624
VL - 23
SP - 305
EP - 341
JO - Research in Social Stratification and Mobility
JF - Research in Social Stratification and Mobility
ER -