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Is Worker Behaviour Consistent with Efficiency Wages?

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  • Drago, Robert
  • Heywood, John S

Abstract

A model of worker behavior under efficiency wages is presented and the fundamental hypotheses identified. Using survey data from the United States, a cross-sectional testing equation is estimated. While not uniformly successful, the fundamental results emerge as a strong positive partial correlation between reported effort and the wage rate of the employee and between that same effort measure and degree of monitoring. These results, together with a weaker negative partial correlation between reported effort and the chances for reemployment after dismissal, are taken as evidence consistent with the efficiency wage model. Copyright 1992 by Scottish Economic Society.

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Bibliographic Info

Article provided by Scottish Economic Society in its journal Scottish Journal of Political Economy.

Volume (Year): 39 (1992)
Issue (Month): 2 (May)
Pages: 141-53

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Handle: RePEc:bla:scotjp:v:39:y:1992:i:2:p:141-53

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Cited by:
  1. Green, Francis & McIntosh, Steven, 2001. "The intensification of work in Europe," Labour Economics, Elsevier, vol. 8(2), pages 291-308, May.
  2. Cockx, Bart & Picchio, Matteo, 2011. "Scarring Effects of Remaining Unemployed for Long-Term Unemployed School-Leavers," IZA Discussion Papers 5937, Institute for the Study of Labor (IZA).
  3. Agell, Jonas & Bennmarker, Helge, 2002. "Wage Policy and Endogenous Wage Rigidity: A Representative View from the Inside," Research Papers in Economics 2002:12, Stockholm University, Department of Economics.
  4. Denis Chênevert & Michel Tremblay, 2011. "Between universality and contingency: An international study of compensation performance," International Journal of Manpower, Emerald Group Publishing, vol. 32(8), pages 856-878, November.
  5. Sue Fernie & David Metcalf, 1998. "(Not)hanging on the telephone: payment systems in the new sweatshops," LSE Research Online Documents on Economics 20275, London School of Economics and Political Science, LSE Library.
  6. Sue Fernie & David Metcalf, 1998. "(Not)Hanging on the Telephone: Payment systems in the New Sweatshops," CEP Discussion Papers dp0390, Centre for Economic Performance, LSE.
  7. Lang, Oliver, 1993. "Lohnprämien und Leistungsbereitschaft: Ein latentes Strukturmodell zur empirischen Überprüfung der Shirking-Hypothese," ZEW Discussion Papers 93-17, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  8. Goerke, Laszlo, 2000. "On the structure of unemployment benefits in shirking models," Labour Economics, Elsevier, vol. 7(3), pages 283-295, May.
  9. Heywood, John S. & Siebert, W. Stanley & Wei, Xiangdong, 2013. "The Consequences of a Piece Rate on Quantity and Quality: Evidence from a Field Experiment," IZA Discussion Papers 7660, Institute for the Study of Labor (IZA).
  10. Thalmaier, Anja, 1999. "Bestimmungsgründe von Fehlzeiten: Welche Rolle spielt die Arbeitslosigkeit?," IZA Discussion Papers 62, Institute for the Study of Labor (IZA).

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