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“Economics is a Serious Subject.” Edwin Cannan.

The purpose of this paper is to trace the historical foundation of the efficiency wage theory and examine its conceptual framework against other wage theories, in relation to conventional practices in human resource management.

Following a description of various wage theories, a conceptual analysis maps the evolutionary process of efficiency wage theory.

The concept of efficiency being applied to wages appears to evolve from Smith. The difference between the classical and the institutionalists’ perspectives appears to be the meaning ascribed to efficiency. Clark seemed to be the first one to examine the relationship between labor and productivity. Webb expanded the meaning of efficiency and demonstrated the relationship with productivity. Institutional and behavioral theorists further developed and advocated for efficiency wages. A synthesis of recent empirical studies provides support for the theory, which challenges conventional human resource management wage practices.

The findings solidify the usefulness of efficiency wage theory not only as a motivational management tool but also as a source for social and economic well-being.

The contribution of this historical account is that it synthesizes the root and development of efficiency wages theory. It also highlights the social context of the theory and provides an interface between economic and management perspectives.

Allyn Young′s lectures, as recorded by the young Nicholas Kaldor, survey the historical roots of the subject from Aristotle through to the modern neo‐classical writers. The focus throughout is on the conditions making for economic progress, with stress on the institutional developments that extend and are extended by the size of the market. Organisational changes that promote the division of labour and specialisation within and between firms and industries, and which promote competition and mobility, are seen as the vital factors in growth. In the absence of new markets, inventions as such play only a minor role. The economic system is an inter‐related whole, or a living “organon”. It is from this perspective that micro‐economic relations are analysed, and this helps expose certain fallacies of composition associated with the marginal productivity theory of production and distribution. Factors are paid not because they are productive but because they are scarce. Likewise he shows why Marshallian supply and demand schedules, based on the “one thing at a time” approach, cannot adequately describe the dynamic growth properties of the system. Supply and demand cannot be simply integrated to arrive at a picture of the whole economy. These notes are complemented by eleven articles in the Encyclopaedia Britannica which were published shortly after Young′s sudden death in 1929.

The objective of this study is to construct a theoretical framework concerning wage determination, grounded in principles and supplemented by conventional theories. It discusses the Islamic perspectives on minimum wage and examines contemporary challenges and intricacies in its application.

This study uses thematic analysis to create the conceptual framework, drawing upon a review of pertinent literature such as academic papers, books and articles published up to 2023.

The framework encompasses various categories, namely, employee characteristics, job characteristics, market factors, compensation practices and Islamic principles. Each category consists of multiple variables. The resulting framework offers a holistic and ethically grounded methodology for wage determination, aligning with both Islamic and conventional perspectives. This study notes the absence of a universally agreed-upon minimum wage. Islamic economics faces challenges due to the unclear application of principles, limited awareness, legal constraints and a lack of empirical evidence on wage systems, along with complexities in their implementation.

The paper’s limited scope focuses solely on the Islamic perspective on wage determination, without comparing it to the conventional viewpoint. This may have implications for future research.

The insights on Islamic principles and wage determination guide scholars and policymakers interested in promoting just and equitable wages.

This study is distinct in its integration of various factors to propose an all-encompassing framework for wage determination, rooted in the Quran and principles, while also reinforcing the framework with conventional theories. Additionally, it adds to the growing body of literature by investigating the Quran’s stance and principles on minimum wage, as well as discusses the challenges involved in implementing an Islamic approach to wage determination, which has received limited attention in Islamic literature.

To analyse two important effects of the level of social concern in the firm. First, the effect on the labour force composition, i.e. do particular types of concerns attract certain kinds of employees? Second, the effect on the wage level within the firm, i.e. do firm‐provided social concerns substitute for money wages, or are they provided as an additional compensation?

Empirical analysis using a survey on more than 2,000 firms, linked to administrative data for each employee in the firms. Estimates wage equations using the IV approach to deal with endogeneity of the level of social concerns. Two competing theories aiming to explain the use of social concerns toward employees, the compensating wage differential theory and corporate social responsibility, are compared.

Finds indications in favour of the compensating wage differential theory when looking at wage effects at the firm level, whereas looking at the target group level finds that white‐collar workers might experience higher levels of social concerns without having lower wages, which contrast the theory of compensating wage differentials.

The paper compare two well‐established theories within two different disciplines – the compensating wage differential theory from economics, and CSR from management. This is done using solid empirical analysis.

Competitive labour market theory predicts that within a local labour market there will be a tendency for labour of the same quality to obtain parity of earnings irrespective of the employment location. More strictly, the theory posits the equalisation of net advantages through time for homogeneous labour inputs. No plant may, according to the theory, set wages and other conditions of employment independent of the behaviour of its competitors. Wage levels within the market are, then, subject to the equalising forces of competition. Consequently, any differentials enjoyed by one plant over another for a well defined homogeneous labour input must either be transient or reflect efficiency unit (labour supply) differences. In the absence of labour quality differences, then, wage differentials would be a short run phenomenon to be explained by differences in final product demand and productivity variations against a background of short run inelasticity of labour supply. Such disequilibrating forces should, in the long run, tend to be counterbalanced by actual or potential mobility within the labour market which would restore wage equality.

The purpose of the paper is to propose that stakeholder scholarship should take its rightful role in the acknowledgement of stakeholder value production, the enhancement of stakeholder voice and public stakeholder advocacy. Its focus is on low‐wage workers particularly, although the analysis holds for dependent stakeholders generally.

This paper analyses and develops extant stakeholder theory with regard to employer treatment of low‐wage workers. A general point is made about the need for stakeholder research, writing and advocacy to take more explicit normative stances. This is achieved in three stages: by explaining why low‐wage workers are dependent stakeholders; by considering the strengths and weakness of stakeholder theory as an explanatory framework for low‐wage workers; and by identifying how stakeholder theory should be developed in order to provide an explicitly normative account of low‐wage workers that leads to pragmatic action.

Labour and industrial relations scholarship would benefit from the integration of stakeholder language and scholarship, as the stakeholder concept has gained currency and legitimacy among academics in a variety of fields. Stakeholder theory scholarship would benefit from explicit consideration of power, which is common to work in labour and industrial relations scholarship.

Stakeholder theory can benefit from labour and industrial relations scholarship and practice. Likewise, industrial relations can benefit from understanding and integration of the increasingly ubiquitous stakeholder concept. It is believed that the integration of stakeholder theory with insights from labour and industrial relations scholarship helps further work in both fields.

This article provides a detailed investigation of how Lewis revisited classical and Marxian concepts such as productive/unproductive labor, economic surplus, subsistence wages, reserve army, and capital accumulation in his investigation of economic development. The Lewis 1954 development model is compared to other models advanced at the time by Harrod, Domar, Swan, Kaldor, Solow, von Neumann, Nurkse, Rosenstein-Rodan, Myint, and others. Lewis applied the notion of economic duality to open and closed economies.

The purpose of this paper is to examine which forms of compensation are more efficient at affecting employee attitudes, thus extending efficiency wage theory from wage-based compensation to profit sharing and stock-based compensation.

Three models of efficiency wage theory were tested: shirking, turnover and gift exchange. The effects of those three modes of compensation (wages, profit sharing and stock) were contrasted for the three models of efficiency wage theory.

The findings were that raising wages is the most efficient form of compensation in the turnover and shirking models, while in the gift exchange model profit sharing and stock-based compensation may function like efficiency wages.

This is the first study of this particular issue.