Carrots and Sticks: Pay, Supervision, and Turnover
The efficiency wage model (EWM) has been advanced as an explanation for large and persistent wage differentials. The shirking version of the EWM assumes a trade-off b etween self-supervision and external supervision. The turnover versio n assumes turnover is costly to the firm. Variation across firms in t he cost of monitoring/shirking or turnover then is hypothesized to ac count for wage variations across firms for homogeneous workers. Using a new sample of firm data, this paper presents empirical evidence of the trade-off of wage premiums for supervisory intensity and turnove r. Little evidence is found to support either version of the EWM. Copyright 1987 by University of Chicago Press.
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.:
- Brown, Charles & Medoff, James, 1989.
"The Employer Size-Wage Effect,"
Journal of Political Economy,
University of Chicago Press, vol. 97(5), pages 1027-59, October.
- Abraham, Katharine G & Farber, Henry S, 1987.
"Job Duration, Seniority, and Earnings,"
American Economic Review,
American Economic Association, vol. 77(3), pages 278-97, June.
- Katharine G. Abraham & Henry S. Farber, 1986. "Job Duration, Seniority and Earnings," Working papers 407, Massachusetts Institute of Technology (MIT), Department of Economics.
- Katharine G. Abraham & Henry S. Farber, 1986. "Job Duration, Seniority, and Earnings," NBER Working Papers 1819, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:ucp:jlabec:v:5:y:1987:i:4:p:s136-52. 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: (Journals Division)
If references are entirely missing, you can add them using this form.