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Equilibrium Wage
The wage rate at which the quantity of labor supplied equals the quantity of labor demanded, resulting in a stable employment situation without surpluses or shortages.
Efficiency Wage
is the concept that paying workers a higher wage than the market equilibrium can lead to higher productivity and efficiency, incentivizing better performance and loyalty.
Similar Job
Pertains to a job that has duties, skills, and responsibilities closely matching those of another job, often within the same industry or field.
Adverse Selection
A situation where asymmetric information results in high-risk individuals being more likely to participate in an agreement than low-risk individuals, typically in insurance markets.
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