Is Worker Behaviour Consistent with Efficiency Wages?

Robert Drago and John Heywood

Scottish Journal of Political Economy, 1992, vol. 39, issue 2, 141-53

Abstract: A model of worker behavior under efficiency wages is presented and the fundamental hypotheses identified. Using survey data from the United States, a cross-sectional testing equation is estimated. While not uniformly successful, the fundamental results emerge as a strong positive partial correlation between reported effort and the wage rate of the employee and between that same effort measure and degree of monitoring. These results, together with a weaker negative partial correlation between reported effort and the chances for reemployment after dismissal, are taken as evidence consistent with the efficiency wage model. Copyright 1992 by Scottish Economic Society.

Date: 1992
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Persistent link: https://EconPapers.repec.org/RePEc:bla:scotjp:v:39:y:1992:i:2:p:141-53

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Scottish Journal of Political Economy is currently edited by Tim Barmby, Andrew Hughes-Hallett and Campbell Leith

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