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Malek Alhassan
on Nov 16, 2024

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A firm might offer efficiency wages in order to attract a better pool of applicants.

Efficiency Wages

A theory that suggests firms pay their employees higher wages than the market equilibrium to increase productivity and efficiency.

Pool of Applicants

The group of candidates from which job positions can be filled.

  • Gain an understanding of the theory and consequences of efficiency wages, along with their importance in decreasing shirking and turnover rates in companies.
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Miyah MaloneNov 19, 2024
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