Oi, Walter Y.; Idson, Todd L. - In: Handbook of labor economics : volume 3, part B, (pp. 2165-2214). 1999
entrepreneurs to minimize the sum of wages and monitoring costs. (2) Big firms pay efficiency wages to deter shirking. (3) Big firms … adopt a discretionary wage policy to share rents, or in Slichter's words, “Wages over a considerable range reflect … managerial discretion. When management can easily afford to pay high wages, they tend to do so.” We advance a productivity …