Working Paper Series,
Trade Union Institute for Economic Research

Abstract: We present a growth model in which the work morale of R&D workers is endogenously determined by fair wage considerations and show that increases in endowments of researchers do not necessarily have positive growth effects. The results is in line with the empirical observations that the very large increases in the number of R&D workers during the last 30 years have not generated the growth rates predicted by the basic endogenous growth models. Moreover, a number of mechanisms are present in the model that counteract the positive growth effects of higher education and which do not show up in growth models based on competitive wage setting.

Keywords: Efficiency wages; Fairness; Growth

JEL-codes: J41; O40

25 pages, July 25, 1999

Full text files

WP153.pdf  

Download statistics

• Home page for this series

Questions (including download problems) about the papers in this series should be directed to Sune Karlsson ()
Report other problems with accessing this service to Sune Karlsson ().

This page generated on 2024-02-05 17:11:11.