The Worker Discipline Effect: A Disaggregative Analysis

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Abstract
We test for the presence of a "worker discipline effect," wherein macroeconomic conditions influence worker effort, and we examine inter-industry variation in its strength. An employment function analysis is first used to find evidence of a worker discipline effect in the majority of U.S. 3-digit manufacturing industries. A factor analysis of industry firm and labor market characteristics is then used to identify several underlying factors by which industries can be distinguished. We find that the strength of the worker discipline effect is positively and significantly correlated with the degree to which industries have "secondary" characteristics.

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