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The Effect of Labor-Management Complementarities on Production and Efficiency When Management Is Paid but Labor Is Not Paid

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  • Kelly E. Carter

    (Morgan State University)

Abstract

I measure the effect of differences in labor-management complementarities (LMCs) on differences in production and efficiency when management is paid but labor is not paid. I find that differences in LMCs are positively associated with differences in production and efficiency. This result implies that relatively stronger LMCs are associated with relatively greater production and efficiency even in the absence of compensation for one factor of production.

Suggested Citation

  • Kelly E. Carter, 2018. "The Effect of Labor-Management Complementarities on Production and Efficiency When Management Is Paid but Labor Is Not Paid," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 44(4), pages 535-557, September.
    • Handle: RePEc:pal:easeco:v:44:y:2018:i:4:d:10.1057_s41302-018-0110-0
    DOI: 10.1057/s41302-018-0110-0
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