Allgulin, Magnus; Ellingsen, Tore - Economics Institute for Research (SIR), … - 1998
The shirking model of efficiency wages has been thought to imply that monitoring and pay are substitute instruments for … effort - for example that there are only two possible effort levels. Under more reasonable assumptions, monitoring and pay … workers' rents. Finally, much of the empirical literature on the monitoring-pay relationship is shown to be seriously …