Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
971788 | Labour Economics | 2007 | 15 Pages |
Abstract
We show in a theoretical efficiency wage model where firms differ in monitoring intensity that the impact of monitoring intensity on wages is ambiguous, a result that mirrors evidence from the empirical literature. We argue that to correctly specify the impact of monitoring on wages, the interaction between monitoring and effort needs to be modelled. Results using a worker, firm panel from Ghana which contains reasonable effort and monitoring proxies show that the return to effort is higher in poorly monitored sectors as the theory suggests.
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Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Eric Strobl, Frank Walsh,