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Efficiency Wages and Wage Dispersion

Economica, 1991
The efficiency wage hypothesis has normally been used to generate an equilibrium level of unemployment. The authors use it, instead, to generate an equilibrium wage distribution. This paper starts by generalizing the previous work of R. M. Solow in this area.
Ramaswamy, Ramana, Rowthorn, Robert E
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Wage Satisfaction and Reference Wages

2021
That wage satisfaction depends on reference wage is now an acquis of the empirical happiness literature. Employees care about their coworkers’ wage. They compare to different notions of reference wage and suffer from disadvantageous comparisons, more than they enjoy advantageous ones.
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