Wages, Supervision and Sharing.
reportposted on 2009-04-28, 15:43 authored by Sarah B. Brown, Fathi Fakhfakh, John G. Sessions
We investigate the relationship between pay, supervision and employee sharing. Our results suggest an inverse relationship between supervision and pay across both sharing and non-sharing firms, although the trade-off is somewhat assuaged within the former. This would appear to contradict instrumental efficiency wage considerations, but could be rationalised within a gift-exchange context. In terms of specific sharing schemes, it would seem that employee share ownership plans are relatively more successful in alleviating the need to monitor, with higher rates of profit sharing inducing more, rather than less, supervision.