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Efficiency Wages and Effort: Are Hard Jobs Better?

Author

Listed:
  • Strobl, Eric

    (University of Bern)

  • Walsh, Frank

    (University College Dublin)

Abstract

Efficiency wage theory predicts that the wage per unit of effort will be lower in intensively monitored sectors. This wage differential will increase in effort. Using employer-employee matched data from Ghana we provide evidence supporting this hypothesis.

Suggested Citation

  • Strobl, Eric & Walsh, Frank, 2002. "Efficiency Wages and Effort: Are Hard Jobs Better?," IZA Discussion Papers 661, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp661
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    File URL: https://docs.iza.org/dp661.pdf
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    References listed on IDEAS

    as
    1. Solow, Robert M., 1979. "Another possible source of wage stickiness," Journal of Macroeconomics, Elsevier, vol. 1(1), pages 79-82.
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    More about this item

    Keywords

    monitoring; efficiency wages;

    JEL classification:

    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts

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