The Relationship between Supervision and Pay: Evidence from the British New Earnings Survey.

This paper looks at the relationship between supervision and pay using British data that refer to a different institutional context. The analysis is based on information provided by the British New Earnings Survey over the period 1975-82. The empirical investigation reveals that the relationship between supervision and pay is likely to be affected in a significant way not only by the estimation technique, as stressed by the existing literature, but also by errors in the measurement of the main variables. Copyright 1995 by Blackwell Publishing Ltd