The Trade-Off Between Supervision and Wages: Evidence of Efficiency Wages from the NLSY
AbstractStandard efficiency wage models suggest that workers employed in places with lower probabilities of identifying shirking will earn more, as will workers who have better alternative opportunities. This paper provides new empirical evidence in support of efficiency wage theory using the National Longitudinal Surveys of Youth data. The empirical results support the prediction of the model that workers employed in larger work groups are paid more, a finding consistent with a supervision–wage trade-off. Additional evidence supports the prediction that workers with better alternative opportunities earn more.
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Bibliographic InfoArticle provided by Southern Economic Association in its journal Southern Economic Journal.
Volume (Year): 66 (1999)
Issue (Month): 2 (October)
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- Evenson, Robert E. & Kimhi, Ayal & Desilva, Sanjaya, 2000.
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2000 Annual meeting, July 30-August 2, Tampa, FL
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- Ourania Karakosta & Nikos Tsakiris, 2009. "Indirect Tax Reforms and Public Goods under Imperfect Competition," University of Cyprus Working Papers in Economics 5-2009, University of Cyprus Department of Economics.
- Akinori Tomohara & Akihiko Ohno, 2013. "What are Relevant Work Incentive Models? Shirking Model, Gift Exchange Model, or Reciprocity Model," Journal of Labor Research, Springer, vol. 34(2), pages 241-252, June.
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