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Tenure, Wage Profiles and Monitoring

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  • John Sessions

    (University of Bath)

  • N Theodoropoulos

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.

Suggested Citation

  • John Sessions & N Theodoropoulos, 2009. "Tenure, Wage Profiles and Monitoring," Department of Economics Working Papers 27/09, University of Bath, Department of Economics.
    • Handle: RePEc:eid:wpaper:17071
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    More about this item

    Keywords

    efficiency wages; tenure; monitoring;
    All these keywords.

    JEL classification:

    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J54 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Producer Cooperatives; Labor Managed Firms

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