Efficiency wage hypothesis validity tests using stochastic frontier analysis


Ferdous K. F., KAMIL A. A., Baten M. A.

Australian Journal of Basic and Applied Sciences, cilt.5, sa.12, ss.1641-1649, 2011 (Scopus) identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 5 Sayı: 12
  • Basım Tarihi: 2011
  • Dergi Adı: Australian Journal of Basic and Applied Sciences
  • Derginin Tarandığı İndeksler: Scopus
  • Sayfa Sayıları: ss.1641-1649
  • Anahtar Kelimeler: Cobb-Douglas Production Model, Inefficiency Effect, Translog Production Model, Truncated Normal Distribution, Wage Augmented Production Model
  • İstanbul Gelişim Üniversitesi Adresli: Hayır

Özet

This study considered wage augmented production frontiers with inefficiency effects model proposed by Battese and Coelli (1992) where the efficiency wage hypotheses was tested. An unbalanced panel data on 31 manufacturing firm for the period 1989-2000 was used in this study. The wage augmented Cobb-Douglas production function was originate to be an unsatisfactory representation of the data compared to wage augmented Translog frontier model. The results showed that the wage level was one of the significant factors contributing to the output and technical efficiency in truncated normal distribution which was found to be of inferior quality in manufacturing industry in Bangladesh.