IMPACT OF WAGES INEQUALITY AND EMPLOYEE PRODUCTIVITY
CHAPTER ONE INTRODUCTION 1.1 Background of the study In a perfectly competitive labor market, wage is determined by labor productivity, so wage dispersion reflects the marginal contribution to the revenue product of each worker. According to this theory, treating wage inequality as an independent variable in a model of productivity did not find large consensus, and economists have posed little attention on this potential relation. So, the link between wage and ...
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