Estimating the shirking model with variable effort
AbstractWe show in a theoretical efficiency wage model where firms differ in monitoring intensity or in the effort intensity of their technologies 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 andmonitoring proxies show that the return to effort is higher in poorly monitored sectors as the theory suggests.
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Bibliographic InfoArticle provided by Elsevier in its journal Labour Economics.
Volume (Year): 14 (2007)
Issue (Month): 3 (June)
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Web page: http://www.elsevier.com/locate/labeco
Other versions of this item:
- STROBL, Eric & WALSH, Frank, 2003. "Estimating the shirking model with variable effort," CORE Discussion Papers 2003075, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
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