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Estimating the shirking model with variable effort

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Download laboureconomics_accepted_version.pdf171.13 KB
Author(s)
Strobl, Eric 
Walsh, Frank 
Uri
http://hdl.handle.net/10197/8056
Date Issued
June 2007
Date Available
13T12:52:42Z October 2016
Abstract
We show in a theoretical efficiency wage model where firms differ in monitoring intensity that the impact of monitoring intensity on wages is ambiguous, a result that mirrors evidence from the empirical literature. We argue that to correctly specify the impact of monitoring on wages, the interaction between monitoring and effort needs to be modelled. Results using a worker, firm panel from Ghana which contains reasonable effort and monitoring proxies show that the return to effort is higher in poorly monitored sectors as the theory suggests.
Type of Material
Journal Article
Publisher
Elsevier
Journal
Labour Economics
Volume
14
Issue
3
Start Page
623
End Page
637
Copyright (Published Version)
2006 Elsevier
Keywords
  • Efficiency wages

  • Effort

  • Monitoring intensity

  • Efficiency wages

  • Supervision

  • Size

Classification
J30
DOI
10.1016/j.labeco.2006.02.009
Language
English
Status of Item
Peer reviewed
This item is made available under a Creative Commons License
https://creativecommons.org/licenses/by-nc-nd/3.0/ie/
Owning collection
Economics Research Collection
Scopus© citations
7
Acquisition Date
Jan 26, 2023
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Views
1513
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Downloads
518
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