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Supervision and Wages across Industries

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Author Info
Neal, Derek

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Abstract

This paper uses supervision data from a supplement to the 1977 wave of the Panel Survey of Income Dynamics to examine differences in supervision and wages across industries and to evaluate relationships between supervision practices and interindustry wage differentials. The results demonstrate that workers in high-wage industries are supervised with equal or greater stringency than secondary sector workers. Further, the results offer no evidence that interindustry differences in monitoring contribute to interindustry wage differentials. Such findings appear to contradict explanations for industry wage premiums that are motivated by efficiency wage models of shirking. Copyright 1993 by MIT Press.

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Publisher Info
Article provided by MIT Press in its journal Review of Economics & Statistics.

Volume (Year): 75 (1993)
Issue (Month): 3 (August)
Pages: 409-17
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Handle: RePEc:tpr:restat:v:75:y:1993:i:3:p:409-17

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  1. Derek Neal & Sherwin Rosen, 1998. "Theories of the Distribution of Labor Earnings," NBER Working Papers 6378, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. Ross, Stephen L. & Zenou, Yves, 2004. "Shirking, Commuting and Labor Market Outcomes," Working Paper Series 627, Research Institute of Industrial Economics. [Downloadable!]
    Other versions:
  3. Dennis Dittrich & Martin G. Kocher, 2006. "Monitoring and Pay: An Experiment on Employee Performance under Endogenous Supervision," Tinbergen Institute Discussion Papers 06-098/1, Tinbergen Institute. [Downloadable!]
    Other versions:
  4. Ross, Stephen L. & Zenou, Yves, 2008. "Are Shirking and Leisure Substitutable? An Empirical Test of Efficiency Wages based on Urban Economic Theory," CEPR Discussion Papers 6841, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  5. Andreas P. Georgiadis, 2006. "Is there a Wage-Supervision Trade-Off? Efficiency Wages Evidence From the 1990 British Workplace Industrial Relations Survey," The Centre for Market and Public Organisation 06/152, Department of Economics, University of Bristol, UK. [Downloadable!]
  6. Daniel Parent, 2001. "Incentive Pay in the United States: Its Determinants and Its Effects," CIRANO Working Papers 2001s-04, CIRANO. [Downloadable!]
  7. Evenson, Robert E. & Kimhi, Ayal & Desilva, Sanjaya, 2000. "Supervision And Transaction Costs: Evidence From Rice Farms In Bicol, The Philippines," 2000 Annual meeting, July 30-August 2, Tampa, FL 21788, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  8. Robert E. Evenson & Ayal Kimhi & Sanjaya DeSilva, 2000. "Supervision and Transaction Costs: Evidence from Rice Farms in Bicol, the Philippines," Working Papers 814, Economic Growth Center, Yale University. [Downloadable!]
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  9. Dittrich, Dennis & Kocher, Martin, 2006. "Monitoring and Pay: An Experiment on Employee under Endogenous Supervision," CEPR Discussion Papers 5962, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  10. Sarah Brown & Fathi Fakhfakh & John G. Sessions, . "Wages, Supervision and Sharing," Discussion Papers in Public Sector Economics 00/4, Department of Economics, University of Leicester. [Downloadable!]
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  11. Nikolaos Theodoropoulos & John G. Sessions, 2009. "Tenure, Wage Profiles and Monitoring," University of Cyprus Working Papers in Economics 5-2009, University of Cyprus Department of Economics. [Downloadable!]
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  12. Cheryl Long & Richard Boylan, 2003. "Firm Size And Monitoring," Economics Bulletin, Economics Bulletin, vol. 4(34), pages 1-5. [Downloadable!]
  13. Yves Zenou, 2005. "The Todaro Paradox Revisited," IZA Discussion Papers 1861, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  14. Avner Ben-Ner & Fanmin Kong & Stephanie Lluis, . "Uncertainty and Organization Design," Working Papers 0107, Industrial Relations Center, University of Minnesota (Twin Cities Campus). [Downloadable!]
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