Do Firms Pay Efficiency Wages? Evidence with Data at the Firm Level

Campbell, Carl M.

doi:10.1086/298303

Cited by 99 publications

(57 citation statements)

References 18 publications

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“…They find that wage premiums are inversely related to the amount of supervision, presumably a mechanism to reduce shirking. Campbell (1993) considers relative wages and quit rates and finds support for the efficiency wage model. Levine (1993) finds that higher paid workers in both the US and Japan are less likely to quit, more likely to be satisfied with their pay, and report that they work harder.…”

Section: Efficiency Wagesmentioning

confidence: 98%

The Structure of White-Collar Compensation and Organizational Performance

O’Shaughnessy¹

1998

Relations industrielles

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Section: Efficiency Wagesmentioning

confidence: 98%

The Structure of White-Collar Compensation and Organizational Performance

O’Shaughnessy¹

1998

Relations industrielles

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“…Economists argue that, where labour is in short supply, where employers have invested heavily in their employees through training and where skills are expensive and scarce, then 'excessive' amounts of labour turnover constitute inefficiency, being a lost investment or requiring an expensive replacement (Campbell, 1993;Weiss, 1980). Therefore employers would have incentives to devise policies to reduce the level of turnover by retaining labour.…”

Section: Is High Labour Turnover a Problem For Employers?mentioning

confidence: 99%

“…This can motivate workers. Campbell (1993) has demonstrated the effectiveness of offering good, non-pecuniary benefits as a means of reducing labour turnover and the costs associated with it. In this context, then, economists have recognized space for some form of effective management action.…”

Section: Management Action In Dealing With High Labour Turnover At Fimentioning

confidence: 99%

Labour turnover and management retention strategies in new manufacturing plants

Smith¹,

Daskalaki²,

Elger³

et al. 2004

The International Journal of Human Resource Management

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This paper draws from on-going research on labour-management relations in transnational companies within a new town in the English Midlands, Telford Smith, 1998a, 1998b;Smith and Elger, 1998). The paper examines the issue of labour turnover and the management of labour retention using two contrasting case examples from Japanese TNCs. The paper seeks to contextualize management decision-making with regard to labour turnover through a political economy and firm-level analysis. At the macro-level we highlight a shift from using wages (Fordism) and strong internal labour markets (bureaucracy) as labour retention mechanisms, towards an inter-firm collusion on wages, non-poaching and union-avoidance. At the micro-level these strategies are matched with firm-level HRM policies of careful labour selection, company paternalism, segmentation of the labour force into temporary and permanent group and accommodation to higher levels of labour turnover to balance product demand and labour supply. TNCs in our research site, Telford, dominate manufacturing employment, representing 60 per cent of all manufacturing jobs. This is similar to other sites of new jobs growth in the UK, for example Swindon where 66 per cent of manufacturing jobs are with TNCs and other new sites of TNC manufacturing investment. The findings are therefore applicable to other areas in which TNC employment has been dominant in manufacturing.

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“…Worker tenure and labor market experience is expected to positively influence wages (at decreasing rates) through the presence of firm-and general-specific human capital (Campbell 1993 andShakatko 1987). Indicators for whether the worker is newly hired at the firm (not employed by the firm in the four preceding quarters) or is separating (not employed by the firm in the following four quarters) are also included; these workers are likely to not have received a full quarter's worth of wages.…”

Section: A the Estimating Equationmentioning

confidence: 99%

The Wage Impact of Undocumented Workers

2012

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in www.econstor.euThe paper has benefited from comments and suggestions from George Borjas, J. David Brown, Curtis Florence, Jerry Gonzalez, Gordon Hanson, Robert E. Moore, Pia Orrenius, Giovanni Peri, Debra Sabia, Eric Seiber, Chad Sparber, Madeline Zavodny, and seminar participants at the Departments of Economics at the Georgia Institute of Technology, the University of Kentucky, the University of Georgia Department of Public Administration and Policy, Claremont-McKenna College, and the University of California-Riverside. The research assistance of Gustavo Canavire, M. Laurel Graefe, Gustavo Uceda, and Eric Wang is much appreciated. The views expressed here are the authors' and not necessarily those of the Federal Reserve Bank of Atlanta or the Federal Reserve System. Any remaining errors are the authors' responsibility. Abstract: Using administrative, individual-level, longitudinal data from the state of Georgia, this paper finds that a documented worker employed by a firm that hires undocumented workers can expect to earn 0.15 percent less than if employed by a firm that does not hire undocumented workers. However, in sectors where there are opportunities for task specialization and benefits from communication skills, documented workers can expect to earn a wage premium of less than 1 percent from being employed at a firm that also hires undocumented workers.JEL classification: J30, J15

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Do Firms Pay Efficiency Wages? Evidence with Data at the Firm Level

Cited by 99 publications

References 18 publications

The Structure of White-Collar Compensation and Organizational Performance

The Structure of White-Collar Compensation and Organizational Performance

Labour turnover and management retention strategies in new manufacturing plants

The Wage Impact of Undocumented Workers

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