A physiological foundation for the nutrition-based efficiency wage model

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Drawing on recent research on allometric scaling and energy consumption, the present paper develops a nutrition-based efficiency wage model from first principles. The biologically micro-founded model allows us to address empirical criticism of the original nutrition-based efficiency wage model. By extending the model with respect to heterogeneity in worker body size and a physiologically founded impact of body size on productivity, we demonstrate that the nutrition-based efficiency wage model is compatible with the empirical regularity that taller workers simultaneously earn higher wages and are less likely to be unemployed in less developed economies. The theory also provides an answer to the question of why the height-unemployment association may disappear in the process of development.
Original languageEnglish
JournalOxford Economic Papers
Volume63
Issue number2
Pages (from-to)232-253
Number of pages22
ISSN0030-7653
DOIs
Publication statusPublished - Apr 2011

ID: 22128518