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Anonymity, efficiency wages and technological progress
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Broadberry, S. N., Ghosal, Sayantan and Proto, Eugenio (2017) Anonymity, efficiency wages and technological progress. Journal of Development Economics, 127 . pp. 379-394. doi:10.1016/j.jdeveco.2016.06.002 ISSN 0304-3878.
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Official URL: http://dx.doi.org/10.1016/j.jdeveco.2016.06.002
Abstract
Although the industrial revolution is often characterized as the culmination of a process of commercialisation, the precise nature of such a link remains unclear. This paper provides an analysis of one such link: the role of commercialisation in raising wages as impersonal labour market transactions replace personalized customary relations. In the presence of an aggregate capital externality, we show that the resulting shift in relative factor prices will, under certain conditions, lead to higher capital-intensity in the production technology and hence, a faster rate of technological progress. We provide historical evidence using European data to show that England was among the most urbanized and the highest wage countries at the onset of the industrial revolution. The model highlights the effects of changes in the availability of information, typical of a modernising country, on efficiency wages and technological progress.
Item Type: | Journal Article | ||||||||||
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Subjects: | H Social Sciences > HG Finance | ||||||||||
Divisions: | Faculty of Social Sciences > Economics | ||||||||||
Library of Congress Subject Headings (LCSH): | Efficiency wage theory | ||||||||||
Journal or Publication Title: | Journal of Development Economics | ||||||||||
Publisher: | Elsevier | ||||||||||
ISSN: | 0304-3878 | ||||||||||
Official Date: | July 2017 | ||||||||||
Dates: |
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Volume: | 127 | ||||||||||
Page Range: | pp. 379-394 | ||||||||||
DOI: | 10.1016/j.jdeveco.2016.06.002 | ||||||||||
Status: | Peer Reviewed | ||||||||||
Publication Status: | Published | ||||||||||
Access rights to Published version: | Restricted or Subscription Access | ||||||||||
Date of first compliant deposit: | 3 August 2016 | ||||||||||
Date of first compliant Open Access: | 9 October 2018 | ||||||||||
Adapted As: |
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