Scoppa, Vincenzo; Vuri, Daniela - In: IZA Journal of Labor Economics 3 (2014), pp. 1-25
Efficiency wages theories argue that the threat of firing, coupled with a high unemployment rate, is a mechanism that … discourages employee shirking in asymmetric information contexts. Our empirical analysis aims to test the role of unemployment as … unemployment rate (at the provincial level). We find a strong negative association between unemployment and absenteeism rate …