ABSTRACT
Efficiency wage theory refers to different types of models that have flourished since the 1980s and focus on issues of information and incentives.1
According to Akerlof and Yellen, ‘they have in common that in equilibrium an individual firm’s production costs are reduced if it pays a wage in excess of market clearing, and, thus, there is equilibrium involuntary unemployment’ (1986: 1). Different reasons, such as asymmetric information, morale, fairness or inside power, may explain such behaviour.
