Efficiency wage theories suggest that paying higher wages can benefit companies by reducing turnover, increasing worker effort, and attracting better employees. These models can explain why some workers are unemployed even when there are available jobs. By offering deferred payment schemes and other incentives, companies can avoid job shortages and involuntary unemployment. Research shows that wage differences between industries can be explained by efficiency wage theories, and these models can also help understand how wages fluctuate in response to changes in the economy.