Supervision and Wages Across Industries

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Abstract
This paper uses supervision data from a supplement to the 1977 wave of the Panel Survey of Income Dynamics to examine differences in supervision and wages across industries and to evaluate relationships between supervision practices and inter-industry wage differentials. The results demonstrate that workers in high-wage industries are supervised with equal or greater stringency than secondary sector workers. Further, the results offer no evidence that inter-industry differences in monitoring contribute to inter-industry wage differentials. Such findings appear to contradict explanations for industry wage premiums that are motivated by efficiency wage models of shirking.

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