Efficiency Wages and Effort: Are Hard Jobs Better?
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.
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- Solow, Robert M., 1979. "Another possible source of wage stickiness," Journal of Macroeconomics, Elsevier, vol. 1(1), pages 79-82.
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