EFFICIENCY WAGE THEORY: EVIDENCE FOR SINGAPORE MANUFACTURING SECTOR

Sin-Chet Chua (), Yun-Wen Lim (), Teng-Teng Ter () and Soon-Beng Chew ()
Additional contact information
Sin-Chet Chua: Division of Economics, School of Humanities and Social Sciences, College of Humanities, Arts, & Social Sciences, Nanyang Technological University, 14 Nanyang Drive, Singapore 637332, Singapore
Yun-Wen Lim: Division of Economics, School of Humanities and Social Sciences, College of Humanities, Arts, & Social Sciences, Nanyang Technological University, 14 Nanyang Drive, Singapore 637332, Singapore
Teng-Teng Ter: Division of Economics, School of Humanities and Social Sciences, College of Humanities, Arts, & Social Sciences, Nanyang Technological University, 14 Nanyang Drive, Singapore 637332, Singapore
Soon-Beng Chew: Division of Economics, School of Humanities and Social Sciences, College of Humanities, Arts, & Social Sciences, Nanyang Technological University, 14 Nanyang Drive, Singapore 637332, Singapore

The Singapore Economic Review (SER), 2014, vol. 59, issue 03, 1-12

Abstract: This paper attempts to test whether there is econometric evidence in support of the efficiency wage theory in Singapore's manufacturing sector. Two of the possible ways to account for efficiency wages are to show that higher wages have resulted in reduced shirking by workers, and to show that higher wages have resulted in an increase in worker productivity. We find evidence in support of efficiency wages for three out of 18 industries within the manufacturing sector in Singapore based on both ordinary least square (OLS) and 2SLS regression results, and for another two industries based only on OLS and yet another two industries based only on 2SLS.

Keywords: Efficiency wage; shirking model; Singapore manufacturing sector; wages and productivity; JEL Classification: A10; JEL Classification: C25; JEL Classification: E24; JEL Classification: J08; JEL Classification: J30 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S0217590814500210
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:serxxx:v:59:y:2014:i:03:n:s0217590814500210

Ordering information: This journal article can be ordered from

DOI: 10.1142/S0217590814500210

Access Statistics for this article

The Singapore Economic Review (SER) is currently edited by Euston Quah

More articles in The Singapore Economic Review (SER) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().