This value is higher than its equilibrium value to prevent shirking in a model developed by Carl Shapiro and Joseph Stiglitz.
Truman Bewley interviewed hundreds of business people to understand why this value rarely changes. Arindrajit Dube looked at all contiguous counties on a state border in the U.S. to examine the effects of policies affecting this value. David Neumark and William Wascher criticized empirical work by David Card and Alan Krueger that found a new policy affecting it had no effect on the market for New Jersey fast-food restaurants. In New Keynesian models, this value and (*) prices are sometimes "sticky". This value is higher than its equilibrium value to prevent shirking in a model developed by Carl Shapiro and Joseph Stiglitz. The theory of "compensating differentials" states that this value is higher for especially onerous tasks. In many neoclassical models, it is the marginal product of labor. For 10 points, name this payment to workers.
Truman Bewley interviewed hundreds of business people to understand why this value rarely changes.
wages [accept minimum wages] &lt;Bailey&gt;