Sessions, John G.; Skåtun, John D. - Institute for the Study of Labor (IZA) - 2015
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 … effort will depend positively (negatively) on wages (unemployment insurance) in equilibrium. …