Nutritional Efficiency Wages and Unemployment: Where's the Beef?

9 Pages Posted: 15 Apr 2020

See all articles by Benjamin Powell

Benjamin Powell

Texas Tech University - Free Market Institute; Texas Tech University - Rawls College of Business

Ryan Murphy

Southern Methodist University (SMU) - Edwin L. Cox School of Business

Multiple version iconThere are 2 versions of this paper

Date Written: March 2015

Abstract

We modify the standard nutritional efficiency wage model to allow for the fact that employers can directly provide calories to their workers rather than paying a higher wage to induce employees to spend more on their own caloric consumption. We derive the various theoretical outcomes that are possible depending on the assumptions about the transaction costs of directly providing calories. We argue that in most real‐world situations the ability of employers to directly provide calories undermines the traditional efficiency wage theory as a cause of equilibrium unemployment.

Keywords: Efficiency wages, nutrition and economic development, unemployment

Suggested Citation

Powell, Benjamin and Murphy, Ryan, Nutritional Efficiency Wages and Unemployment: Where's the Beef? (March 2015). American Journal of Agricultural Economics, Vol. 97, Issue 2, pp. 405-413, 2015, Available at SSRN: https://ssrn.com/abstract=3574227 or http://dx.doi.org/10.1093/ajae/aau072

Benjamin Powell (Contact Author)

Texas Tech University - Free Market Institute ( email )

Box 45059
Lubbock, TX 79409-5059
United States
806.742.7138 (Phone)
806.742.1854 (Fax)

HOME PAGE: http://www.fmi.ttu.edu

Texas Tech University - Rawls College of Business ( email )

Lubbock, TX 79409
United States
806.834.3097 (Phone)
806.742.1854 (Fax)

Ryan Murphy

Southern Methodist University (SMU) - Edwin L. Cox School of Business ( email )

P.O. Box 750333
Dallas, TX 75275-0333
United States

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