Acemoglu, Daron; Newman, Andrew - C.E.P.R. Discussion Papers - 1997
finds that higher wages are associated with lower monitoring, irrespective of whether these high wages are caused by labour …, monitoring is a type of ‘rent-seeking’ activity and the decentralized equilibrium spends excessive resources on monitoring …. Labour market regulations that reduce monitoring by pushing wages up may increase net output or reduce it only by a small …