Estimating the shirking model with variable effort

Eric Strobl () and Frank Walsh

No 2003075, LIDAM Discussion Papers CORE from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE)

Abstract: We show in a theoretical efficiency wage model where firms differ in monitoring intensity or in the effort intensity of their technologies 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 andmonitoring proxies show that the return to effort is higher in poorly monitored sectors as the theory suggests.

Keywords: efficiency wages; effort; monitoring intensity (search for similar items in EconPapers)
JEL-codes: J30 (search for similar items in EconPapers)
Date: 2003-10
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Citations: View citations in EconPapers (4)

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Related works:
Journal Article: Estimating the shirking model with variable effort (2007)
Working Paper: Estimating the shirking model with variable effort (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:cor:louvco:2003075

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