Is Worker Behaviour Consistent with Efficiency Wages?
A model of worker behavior under efficiency wages is presented and the fundamental hypotheses identified. Using survey data from the United States, a cross-sectional testing equation is estimated. While not uniformly successful, the fundamental results emerge as a strong positive partial correlation between reported effort and the wage rate of the employee and between that same effort measure and degree of monitoring. These results, together with a weaker negative partial correlation between reported effort and the chances for reemployment after dismissal, are taken as evidence consistent with the efficiency wage model. Copyright 1992 by Scottish Economic Society.
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Volume (Year): 39 (1992)
Issue (Month): 2 (May)
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