IJSRP, Volume 6, Issue 8, August 2016 Edition [ISSN 2250-3153]
Inanda Karina Astari Fatma, Syamsurijal Abdul Kadir, Tatang Abdul Madjid Sariman, Saadah Yuliana
The phenomenon of current prevailing wage is the phenomenon of high-wage high competitiveness. Wage theory developed by Rees (1973) and Katz (1980) suggested that wages should not look merely part of the production costs, but also wages are seen as part of efforts to improve the welfare and worker motivation. This theory is a theory of efficiency wages states that corporate profits could rise even though wages are paid above the equilibrium wage prevailing in the market. Yet here the two experts already take into account the quality of the workforce but have not yet come to empirical testing by developing a specific model.