Supervision and Effort in an Intertemporal Efficiency Wage Model: The Role of the Solow Condition

The Solow condition is examined in an intertemporal model that blends the shirking and the turnover models of efficiency wages with managerial supervision. It is shown that the Solow condition does not hold when shirking and turnover costs are considered. The Solow condition can be a possible outcome when managerial productivity offsets shirking and turnover costs.

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Year of publication:	1998-08
Authors:	Faria, Joao Ricardo
Institutions:	School of Economics, University of Kent
Subject:	Labour-Management Relations \| Efficiency Wages \| Unemployment \| Turnover

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Extent:	application/pdf
Series:	Studies in Economics. - ISSN 1466-0814.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Published in Economic Letters, 2000, 67, pp.93-98
Classification:	J50 - Labor-Management Relations, Trade Unions, and Collective Bargaining. General ; J41 - Contracts: Specific Human Capital, Matching Models, Efficiency Wage Models, and Internal Labor Markets ; J63 - Turnover; Vacancies; Layoffs ; J64 - Unemployment: Models, Duration, Incidence, and Job Search
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005763212