Efficiency Wages and Financial Leverage

doi:10.1016/j.frl.2026.110192

Efficiency Wages and Financial Leverage

2026-05-16

0

PRE

AI

J

Jaewan Bae

DOI：10.1016/j.frl.2026.110192

Original

Original request for help

Save

Abstract

En 中文

• We develop an efficiency wage model linking firm survival probability to wages. • We find that higher financial leverage is negatively related to firm wages. • A regulation-based IV confirms the causal effect of leverage on wages. • The wage–leverage relation is stronger for male workers with better outside options. • Higher leverage is associated with lower labor productivity.

Keywords:

Efficiency Wages

Financial Leverage

Firm Survival

Wage Determination

Labor Productivity

Efficiency Wages and Financial Leverage

Abstract

Journal

Organization