Sterling Terrell

smart ideas from books

  • Home
  • About
    • Work With Me
    • My CV
    • Tools
    • Series
  • Newsletter
  • Advertising
You are here: Home / Potpourri / Economics 101: Efficiency Wages

Economics 101: Efficiency Wages

Economics 101: Efficiency Wages

[This is part of the series: The Complete Guide To Economics 101.]

What are efficiency wages?

Efficiency Wages are wages that are above market, which are paid to increase the productivity of a worker.

The theory goes like this:

Say a business knows a worker is worth $70,000 per year to them.

But the worker will accept the job for anything over $35,000 per year.

Businesses that pay the worker closer to $35,000 per year (the market rate) might have a worker that is less motivated, less loyal, less productive, and more willing to shirk responsibilities.

Businesses that pay the worker closer to $70,000 per year might have a worker that is more motivated, more loyal, more productive, and less willing to shirk responsibilities.

Share this:

  • Click to share on Facebook (Opens in new window)
  • Click to share on Twitter (Opens in new window)
  • Click to share on Pinterest (Opens in new window)
  • Click to share on Tumblr (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)
  • Click to share on Reddit (Opens in new window)
  • Click to share on Pocket (Opens in new window)
  • Click to share on WhatsApp (Opens in new window)

Related

Filed Under: PotpourriTagged With: #Economics101

Privacy & Cookies: This site uses cookies. By continuing to use this website, you agree to their use.
To find out more, including how to control cookies, see here: Privacy Policy

Connect

  • Facebook
  • LinkedIn
  • Pinterest
  • Twitter

Free Weekly Newsletter:

Search

Recent Posts

  • Starlings In Flight
  • This Déjà Vu, I love you
  • Didn’t Need Exercise
  • How To Be Great?
  • Fearfully And Wonderfully
  • Professionalize A Passion
  • Code Examples For Our API
  • Is What They Say But What Is
  • In Praise Of Short Chapters
  • Pretend It’s A City, With Fran Lebowitz
  • Must Have Tenacity
  • Don’t Know Jerry Weintraub
  • Instabooks 349
  • Throw The Emergency Break
  • The Week In Review – 255
  • How Much Does A Scriptwriter Get Paid?
  • Random Thoughts – 279
  • Instabooks 348
  • A PO Or A BA
  • How People Get Hired
  • Bridger Plateau
  • Dirty Gutters Trash And Waste
  • The Hardest Part Of Screenwriting
  • 17 Copywriting Tips
  • I Love Grayer And Colder

Top Posts & Pages

  • The Tricky Lily Pad Riddle (You Probably Can't Solve)
    The Tricky Lily Pad Riddle (You Probably Can't Solve)
  • The Week In Review – 255
    The Week In Review – 255
  • Wonder Park Pi Song (Watch It Stick In Your Head)
    Wonder Park Pi Song (Watch It Stick In Your Head)
  • My Notes On, In the Eye of The Storm, By: Max Lucado
    My Notes On, In the Eye of The Storm, By: Max Lucado
  • God Wants You To Know What?
    God Wants You To Know What?
  • Can You Solve The Bat And Ball Riddle?
    Can You Solve The Bat And Ball Riddle?
  • How Much Does A Scriptwriter Get Paid?
    How Much Does A Scriptwriter Get Paid?
  • 31 Persuasion Tips That I Learned From Scott Adams
    31 Persuasion Tips That I Learned From Scott Adams
  • The Importance Of A Writing Pattern
    The Importance Of A Writing Pattern
  • Client Meeting
    Client Meeting

Copyright © 2021 · Generate Pro On Genesis Framework · WordPress · Log in