We undertake the first empirical investigation of the relationship between the slope of the wagetenure
profile and the level of monitoring. On the assumption that firms strive for the optimal trade-off between
these various instruments, we hypothesise that increased monitoring leads to a decline in the slope of the wagetenure
profile. Our empirical analysis, using two cross sections of matched employer-employee British data,
provides robust support for this prediction.
|Name||Bath Economics Research Working Papers|
- efficiency wages