EFFICIENCY WAGE MODELS OF UNEMPLOYMENT: A SECOND VIEW

Efficiency wage models, in which firms find it profitable to pay wages above workers' reservation wages, provide a promising explanation for unemployment and interindustry wage differentials. One criticism of such models is they imply firms should sell jobs by requiring up-front bonds from new workers. However, only some efficiency wage models imply this. Moreover, firms might not require bonds for many reasons. We show that moral hazard and adverse selection models together explain many labor market phenomena. The efficiency wage model conforms well to empirical finding, but certain anomalies suggest the need to consider rent-sharing models.     

Slovenian Social Work: A Case Study of Unexpected Developments in the post-1990 Period

Correspondence to Dr Shulamit Ramon, London School of Economics, Department of Social Policy and Administration, Houghton Street, London WC2A 2AE. Summary The paper contextualizes Slovenian social work in terms of thepolitical, social, economic and cultural changes which Sloveniahas gone through recently. The frame-work of social work educationand services is then outlined. Two major examples of unexpectedinnovative social work projects are outlined and analysed. Theimplications of these examples to Slovenian social work practiceand theory are looked at in the conclusions.