Supervision and Wages across Industries

Derek Neal

The Review of Economics and Statistics, 1993, vol. 75, issue 3, 409-17

Abstract: This paper uses supervision data from a supplement to the 1977 wave of the Panel Survey of Income Dynamics to examine differences in supervision and wages across industries and to evaluate relationships between supervision practices and interindustry wage differentials. The results demonstrate that workers in high-wage industries are supervised with equal or greater stringency than secondary sector workers. Further, the results offer no evidence that interindustry differences in monitoring contribute to interindustry wage differentials. Such findings appear to contradict explanations for industry wage premiums that are motivated by efficiency wage models of shirking. Copyright 1993 by MIT Press.

Date: 1993
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