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Efficiency Wage and Supervision: Theory and Application to the Ivorian Manufacturing Sector

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Author Info
Azam, Jean-Paul
Lesueur, Jean-Yves
Abstract

A simple model is set up to analyse the tradeoff between wage and monitoring costs in an efficiency-wage framework. It is then applied to a panel of firms in the Ivorian manufacturing sector, split in different industries. The parameter restrictions derived from the theoretical model are not rejected for the investment goods, the intermediate goods and the non-food consumption goods sectors, while some puzzling results are found for the food and agro-industrial sectors. Copyright 1997 by Oxford University Press.

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Publisher Info
Article provided by Oxford University Press in its journal Journal of African Economies.

Volume (Year): 6 (1997)
Issue (Month): 3 (October)
Pages: 445-62
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Handle: RePEc:oup:jafrec:v:6:y:1997:i:3:p:445-62

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  1. Benhassine, Najy & Fafchamps, Marcel & Söderbom, Måns, 2006. "Wage Gaps and Job Sorting in African Manufacturing," CEPR Discussion Papers 6003, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  2. Azam, Jean-Paul & Ris, Catherine, 2001. "Rent-sharing, hold-up, and manufacturing wages in Cote d'Ivoire," Policy Research Working Paper Series 2600, The World Bank. [Downloadable!]
  3. Marcel Fafchamps & Måns Söderbom, 2004. "Wages and Labor Management in African Manufacturing," Development and Comp Systems 0409043, EconWPA. [Downloadable!]
    Other versions:
  4. Fox, Louise & Oviedo, Ana Maria, 2008. "Are skills rewarded in Sub-Saharan Africa ? determinants of wages and productivity in the manufacturing sector," Policy Research Working Paper Series 4688, The World Bank. [Downloadable!]
  5. Perroni, Carlo & Proto, Eugenio, 2007. "Moral Hazard and Entrepreneurial Failure in a Two-sector Model of Productive Matching - with an Application to the Natural Resource Curse," The Warwick Economics Research Paper Series (TWERPS) 796, University of Warwick, Department of Economics. [Downloadable!]
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