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Efficiency Wage and Supervision: Theory and Application to the Ivorian Manufacturing Sector

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  • Azam, Jean-Paul
  • Lesueur, Jean-Yves

Abstract

A simple model is set up to analyse the tradeoff between wage and monitoring costs in an efficiency-wage framework. It is then applied to a panel of firms in the Ivorian manufacturing sector, split in different industries. The parameter restrictions derived from the theoretical model are not rejected for the investment goods, the intermediate goods and the non-food consumption goods sectors, while some puzzling results are found for the food and agro-industrial sectors. Copyright 1997 by Oxford University Press.

Suggested Citation

  • Azam, Jean-Paul & Lesueur, Jean-Yves, 1997. "Efficiency Wage and Supervision: Theory and Application to the Ivorian Manufacturing Sector," Journal of African Economies, Centre for the Study of African Economies, vol. 6(3), pages 445-462, October.
    • Handle: RePEc:oup:jafrec:v:6:y:1997:i:3:p:445-62
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    Cited by:

    1. Nicoletta Berardi, 2013. "Social networks and wages in Senegal’s labor market," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-26, December.
    2. Perroni, Carlo & Proto, Eugenio, 2007. "Moral Hazard and Entrepreneurial Failure in a Two-sector Model of Productive Matching - with an Application to the Natural Resource Curse," The Warwick Economics Research Paper Series (TWERPS) 796, University of Warwick, Department of Economics.
    3. Fox, Louise & Oviedo, Ana Maria, 2008. "Are skills rewarded in Sub-Saharan Africa ? determinants of wages and productivity in the manufacturing sector," Policy Research Working Paper Series 4688, The World Bank.
    4. Cheong, David & Sonnenschein, Xiaohong, 2012. "Trade Liberalization and Employment in Indonesia: A CGE Analysis," Conference papers 332278, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    5. Marcel Fafchamps & Måns Söderbom, 2004. "Wages and Labor Management in African Manufacturing," Development and Comp Systems 0409043, University Library of Munich, Germany.
    6. Marcel Fafchamps & Mans Söderbom & Najy Benhassine, 2009. "Wage Gaps and Job Sorting in African Manufacturing," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 18(5), pages 824-868, November.
    7. Azam, Jean-Paul & Ris, Catherine, 2001. "Rent-sharing, hold-up, and manufacturing wages in Cote d'Ivoire," Policy Research Working Paper Series 2600, The World Bank.
    8. Marcel Fafchampsm & Måns Söderbom, 2006. "Wages and Labor Management in African Manufacturing," Journal of Human Resources, University of Wisconsin Press, vol. 41(2).
    9. Valerie Mueller & Emily Schmidt & Nancy Lozano & Siobhan Murray, 2019. "Implications of Migration on Employment and Occupational Transitions in Tanzania," International Regional Science Review, , vol. 42(2), pages 181-206, March.

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