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Efficiency wages and endogenous supervision technology

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  • Ferruccio Ponzano

Abstract

Analyses about supervision technology are not frequent in economic literature. This paper analyses an efficiency wage model with an endogenous choice of supervision technology. Starting from Shapiro and Stiglitz (1984) and Bowles (1985) models’ I show a model with an endogenous and costly supervision technology to better explain the behaviour of firms and workers under asymmetric information in the labour market. In particular, I show how firms allocate costs between wages and supervision under these hypotheses and how unemployment affects this distribution.

Suggested Citation

  • Ferruccio Ponzano, 2001. "Efficiency wages and endogenous supervision technology," POLIS Working Papers 23, Institute of Public Policy and Public Choice - POLIS.
    • Handle: RePEc:uca:ucapdv:23
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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