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Supervision and Effort in an Intertemporal Efficiency Wage Model: The Role of the Solow Condition

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  • Joao Ricardo Faria

Abstract

The Solow condition is examined in an intertemporal model that blends the shirking and the turnover models of efficiency wages with managerial supervision. It is shown that the Solow condition does not hold when shirking and turnover costs are considered. The Solow condition can be a possible outcome when managerial productivity offsets shirking and turnover costs.

Suggested Citation

  • Joao Ricardo Faria, 1998. "Supervision and Effort in an Intertemporal Efficiency Wage Model: The Role of the Solow Condition," Studies in Economics 9814, School of Economics, University of Kent.
  • Handle: RePEc:ukc:ukcedp:9814
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    References listed on IDEAS

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    More about this item

    Keywords

    Labour-Management Relations; Efficiency Wages; Unemployment; Turnover;
    All these keywords.

    JEL classification:

    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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