The efficiency-wage theory of worker health is more relevant for less developed countries than rich countries.

Question

Quizplus · Accepted Answer

The efficiency-wage theory, which suggests that higher wages lead to more productive workers, is often more relevant in less developed countries due to generally lower baseline wages and poorer health conditions. In these contexts, increasing wages can significantly improve worker health and productivity, whereas in richer countries, basic health needs are more likely to be already met, making the theory's impact less pronounced.

The Efficiency-Wage Theory of Worker Health Is More Relevant for Less