Contemporary examples of efficiency wage

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Most firms want their workers to feel good about their jobs. Feeling good promotes good work, which leads to higher productivity. Paying a high wage is one instrument the firm can use to achieve these goals. Economists call the theories that link the productivity or the efficiency of workers to the wage they are paid efficiency wage theories. One example of efficiency wage was implemented by Ford in 1914, where he increased all qualified employees pay from an average of $2.30 for a nine-hour day to $5.00 a day for an eight-hour day and this resulted in a dramatic drop in layoff rate and turnover rate of workers. Please give any two contemporary examples of efficiency wage practices and their possible effect.

Reference no: EM131848688

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