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- W2008123071 abstract "This paper develops a social custom model to investigate the validity of two beliefs in the shirking version of efficiency wages as follows: (i) more intensive supervision of the employer will induce the workers to increase their work effort; (ii) the firm faces a trade-off between the wage (carrot) incentive and the supervision (stick) incentive. It is found that two conflicting effects, namely the disciplining effect and the crowding out effect, will emerge when the employer raises the level of monitoring. In a situation where the crowding out effect dominates the disciplining effect, a rise in monitoring intensity tends to lower, rather than enhance, work effort. It is also found that, if tighter monitoring leads to a reduction in work effort, the firm should treat both wage and supervision incentives as complements, rather than as substitutes." @default.
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- W2008123071 title "Carrots or sticks? A social custom viewpoint on worker effort" @default.
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- W2008123071 doi "https://doi.org/10.1016/s0176-2680(99)00007-5" @default.
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