Discussion Papers, Policy Papers, Books & Reports, Bulletin, Newsletter, Economic Policy Lunchtime Meetings, Workshops & Conferences, Events Diary, Previous Events Programme Areas, Current Research Projects, Networks, Vacancies Programme Directors, Researchers Lists, Noticeboard Press Releases, Coverage, Request a Press Release Data?, Resources for Economists, Data on Other sites Membership information Login, Create a Profile, Profile Benefits, Your Profile Settings, Forgot Your Password? Site Map, How to find us, How to Order Publications, Privacy Policy, Feedback How to find us, Frequently Asked Questions, ESRC Site Guide, Frequently Asked Questions, Vacancies, How to Search Site Map, How to find us, How to Order Publications, Privacy Policy, Feedback CEPR Home Page You have items in your shopping cart. Click to view your cart


DP5174 The Macroeconomic Consequences of Reciprocity in Labour Relations

Author(s): Jean-Pierre Danthine , Andre Kurmann
Publication Date: August 2005
Keyword(s): reciprocity , rent-sharing , efficiency wages , wage rigidity
JEL(s): E24 , E32 , J50
Programme Areas: International Macroeconomics
Link to this Page: www.cepr.org/pubs/dps/DP5174.asp


We develop and analyse a structural model of efficiency wages founded on reciprocity. Workers are assumed to face an explicit trade-off between the disutility of providing effort and the psychological benefit of reciprocating the gift of a wage offer above some reference level. The model provides a rationale for rent sharing -- a feature that is very much present in the data but absent from previous formulations of the efficiency wage hypothesis. This firm-internal perspective on efficiency wages has important macroeconomic consequences: rent-sharing considerations promote wage rigidity, internal amplification and asymmetric responses to technology and demand shocks.

Full text Search:
Enter a DP Number:

Access other features of the site by loging in with your personal profile. Purchase a copy of the paper in PDF format. How to subscribe to the CEPR Discussion Paper series Send an email to a colleague with details of the paper. Obtain Plain Text details of this paper which you can copy in to a word document or email allowing you to easily cite this paper! Help in purchasing and downloading papers. CEPR RSS feeds information page.

Your current location: Publications > Discussion Papers
Top CEPR, 77 Bastwick St, London EC1V 3PZ
United Kingdom.
Tel: +44 (0)20 7183 8801     Fax: +44 (0)20 7183 8820
Email: cepr@cepr.org     Webmaster: webmaster@cepr.org 		Home
With the support of the European Union: Support for bodies active at European level in the field of active European citizenship