The Trade-Off Between Supervision Cost and Performance Based Pay: Does Gender Matter?
The study adds to the literature by providing new empirical evidence consistent with efficiency wage theory,and by providing estimates of the average cost of supervising a worker by industry. This research uses the 1996 wave of the NLSY and incorporates estimates of supervision cost computed from industry classifications. We further detect presence of no gender differences neither in risk-averseness nor in productivity gains associated with cost of supervision and performance-based pay. While the findings imply that employers should consider the incentive effects of supervision and performance based pay when constructing pay schemes, there is no need for employers to devote resources to constructing gender-specific payment mechanisms. Our evidence suggests that profit-maximizing firms should treat males and females equally and develop gender-neutral pay schemes. Copyright Kluwer Academic Publishers 2004
Volume (Year): 23 (2004)
Issue (Month): 5 (December)
|Contact details of provider:|| Web page: http://www.springer.com|
|Order Information:||Web: http://www.springer.com/new+%26+forthcoming+titles+%28default%29/journal/11187/PS2|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Goldin, Claudia, 1986.
"Monitoring Costs and Occupational Segregation by Sex: A Historical Analysis,"
Journal of Labor Economics,
University of Chicago Press, vol. 4(1), pages 1-27, January.
- Claudia Goldin, 1985. "Monitoring Costs and Occupational Segregation by Sex: An Historical Analysis," NBER Working Papers 1560, National Bureau of Economic Research, Inc.
- Goldin, Claudia, 1986. "Monitoring Costs and Occupational Segregation by Sex: A Historical Analysis," Scholarly Articles 2666727, Harvard University Department of Economics.
- Jonathan S. Leonard, 1987.
"Carrots and Sticks: Pay, Supervision and Turnover,"
NBER Working Papers
2176, National Bureau of Economic Research, Inc.
- Leonard, Jonathan S, 1987. "Carrots and Sticks: Pay, Supervision, and Turnover," Journal of Labor Economics, University of Chicago Press, vol. 5(4), pages S136-52, October.
- Ewing, Bradley T., 1996. "Wages and performance-based pay: Evidence from the NLSY," Economics Letters, Elsevier, vol. 51(2), pages 241-246, May.
- Sunden, Annika E & Surette, Brian J, 1998. "Gender Differences in the Allocation of Assets in Retirement Savings Plans," American Economic Review, American Economic Association, vol. 88(2), pages 207-11, May.
- Daniel Parent, 1999.
"Methods of Pay and Earnings: A Longitudinal Analysis,"
Cornell University, ILR School, vol. 53(1), pages 71-86, October.
- Daniel Parent, 1997. "Methods of Pay and Earnings: A Longitudinal Analysis," CIRANO Working Papers 97s-14, CIRANO.
- Ronald G. Ehrenberg & Michael L. Bognanno, 1988.
"Do Tournaments Have Incentive Effects?,"
NBER Working Papers
2638, National Bureau of Economic Research, Inc.
- Lindbeck, Assar & Snower, Dennis J., 1987.
"Efficiency wages versus insiders and outsiders,"
European Economic Review,
Elsevier, vol. 31(1-2), pages 407-416.
- Charles Brown, 1992.
"Wage Levels and Method of Pay,"
RAND Journal of Economics,
The RAND Corporation, vol. 23(3), pages 366-375, Autumn.
- David S. Evans & Linda S. Leighton, 1989.
"Why Do Smaller Firms Pay Less?,"
Journal of Human Resources,
University of Wisconsin Press, vol. 24(2), pages 299-318.
- Jianakoplos, Nancy Ammon & Bernasek, Alexandra, 1998. "Are Women More Risk Averse?," Economic Inquiry, Western Economic Association International, vol. 36(4), pages 620-30, October.
- Bradley T. Ewing & James E. Payne, 1999. "The Trade-Off Between Supervision and Wages: Evidence of Efficiency Wages from the NLSY," Southern Economic Journal, Southern Economic Association, vol. 66(2), pages 424-432, October.
When requesting a correction, please mention this item's handle: RePEc:kap:sbusec:v:23:y:2004:i:5:p:453-460. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)or (Rebekah McClure)
If references are entirely missing, you can add them using this form.