On the contrary, the idea that the

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On the
contrary, the idea that the theory of efficiency wages reflects is that high
wages are productive insofar as they increase the effort and efficiency of
workers. Companies are willing to pay a higher salary than the market empties
in order to induce the workers to work effectively. It is assumed that the
company sets the salary unilaterally and the worker decides what amount of
employment and effort will be offered. The idea of ??efficiency wages serves to
justify the rigidity of down wages, since employers set a high efficiency wage
above the competitive equilibrium wage. Therefore, there will be involuntary
unemployment to the extent that excess supply of labor appears. There are no
legal mechanisms in this case that generate distortions of competition, it is
the market itself that generates its own distortions, since rigid wages to the
downside are the “natural” result of the market.

Obviously, it is difficult
to think that efficiency wages are applied in the totality of the economy, that
is, that all companies in all sectors pay their workers efficiency salaries. It
would be logical to think that the establishment of efficiency wages makes
sense in companies where the staff is highly qualified since the cost of
supervision is very high and it is practically impossible to carry out the
direct surveillance of the worker. In this case, the company finds it
profitable to establish an efficiency salary since, despite being an
indiscriminate incentive that generates an increase in costs, supervision would
entail a higher cost. On the contrary, in sectors where the control of labour
productivity can be carried out relatively easily, it does not seem logical to
establish an efficiency salary. Finally, it should be mentioned that since the
importance of the mechanisms of efficiency salaries varies from one sector to
another, as we explained above, the effects of the establishment of these
salaries are noticeable, above all, in the structure of salaries. Note that the
existence of efficiency wages does not generate unemployment on a global scale
since they are established in localized sectors, which allows that, given the
existence of labour mobility, workers move to other sectors in which they can
be employed.

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