Do you agree that by paying higher than the minimum wage, employers can retain skilled workers, increase productivity, or ensure loyalty? Comment on the statement in the light of efficiency wage model.
Introduction Wages play a crucial role in attracting, motivating, and retaining employees. While the minimum wage is set by law to ensure a basic standard of living for workers, many firms voluntarily pay wages above this level. The efficiency wage model offers a theoretical explanation for why paying higher-than-minimum wages can be beneficial not only […]