Score contribution per author:
α: calibrated so average coauthorship-adjusted count equals average raw count
This paper develops a model based on the "consumption efficiency" hypothesis of H. Leibenstein (1957) and shows the following: (1) it is profitable for the employer to pay the workers a combination of cash and meals, rather than to pay only in cash, when the workers have dependants; (2) the possibility of an excess applicant's equilibrium does not arise in this case; (3) the unit cost of labor (in efficiency units) is minimized in equilibrium; and (4) the proportions of wage payment in the form of meals falls as the worker's expected income from alternative employment rises. Copyright 1989 by Royal Economic Society.