How Do You Prove That Efficiency Wage Theory Facilitates Unemployment?
This article shows readers how efficient wage theory facilitates unemployment in many instances. The constantly changing global environment has forced some employers to reconsider their previously held beliefs concerning efficiency wage theory’s connection with and ability to control unemployment. There is significant data that suggests that the efficiency wage theory has facilitated a societal deterioration and a permanent underclass in some cases due to employer’s refusal to institute innovative revisions to the efficiency wage theory. There are other variables that prove that efficiency wage theory is no longer viable, cost efficient or safe as well. The last point presents employers with a tough decision concerning the future use of efficiency wage theory. While employers have bought into efficiency wage theory as a cost effective initiative, a meticulous and careful analysis of its theoretical principles will prove that this theory has worn out its usefulness in a world that is ev
