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Testing the shirking version of the efficiency wage model in Japanese electric-machinery firms: a panel data approach

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  • Yoshitsugu Kitazawa
  • Makoto Ohta

Abstract

This paper investigates whether electric-machinery firms in Japan paid the efficiency wage to their employees after the Plaza Accord. The estimations are implemented using a dynamic formulation of the shirking version in the efficiency wage model. This formulation is developed by Machin and Manning (1992).

Suggested Citation

  • Yoshitsugu Kitazawa & Makoto Ohta, 2002. "Testing the shirking version of the efficiency wage model in Japanese electric-machinery firms: a panel data approach," Applied Economics Letters, Taylor & Francis Journals, vol. 9(5), pages 335-338.
  • Handle: RePEc:taf:apeclt:v:9:y:2002:i:5:p:335-338
    DOI: 10.1080/13504850110067478
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    References listed on IDEAS

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    1. Machin, Stephen & Manning, Alan, 1992. "Testing Dynamic Models of Worker Effort," Journal of Labor Economics, University of Chicago Press, vol. 10(3), pages 288-305, July.
    2. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
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    Cited by:

    1. repec:ebl:ecbull:v:10:y:2008:i:9:p:1-6 is not listed on IDEAS
    2. Fernando Zanella, 2008. "Different times, different commitments, but the same old practices: failure of the efficiency wage model for socially devoted firms," Economics Bulletin, AccessEcon, vol. 10(9), pages 1-6.

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