Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/110159 
Year of Publication: 
2015
Series/Report no.: 
IZA Discussion Papers No. 8863
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
By relaxing the common efficiency wage assumption of exogenous shirking detection probabilities, we demonstrate how standards and efficiency wages are related. In a more general setting where the probability of detection depends upon the equilibrium effort level of non-shirkers, we show that the uniformly positive (negative) supply-side relationship between wages (unemployment insurance) and effort is no longer guaranteed. Profit maximization on the part of the firm, however, ensures that effort will depend positively (negatively) on wages (unemployment insurance) in equilibrium.
Subjects: 
monitoring
standards
efficiency wages
JEL: 
J33
J41
J54
Document Type: 
Working Paper

Files in This Item:
File
Size
954.31 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.