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Tenure, Wage Profiles and Monitoring

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  • Sessions, John G.
  • Theodoropoulos, Nikolaos

Abstract

We undertake the first empirical investigation of the relationship between the slope of the wagetenure profile and the level of monitoring. On the assumption that firms strive for the optimal trade-off between these various instruments, we hypothesise that increased monitoring leads to a decline in the slope of the wagetenure profile. Our empirical analysis, using two cross sections of matched employer-employee British data, provides robust support for this prediction.

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Paper provided by University of Bath, Department of Economics in its series Department of Economics Working Papers with number 17071.

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Date of creation: Nov 2009
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Handle: RePEc:eid:wpaper:17071

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Keywords: efficiency wages; tenure; monitoring;

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