Score contribution per author:
α: calibrated so average coauthorship-adjusted count equals average raw count
The efficiency wage model (EWM) has been advanced as an explanation for large and persistent wage differentials. The shirking version of the EWM assumes a trade-off b etween self-supervision and external supervision. The turnover versio n assumes turnover is costly to the firm. Variation across firms in t he cost of monitoring/shirking or turnover then is hypothesized to ac count for wage variations across firms for homogeneous workers. Using a new sample of firm data, this paper presents empirical evidence of the trade-off of wage premiums for supervisory intensity and turnove r. Little evidence is found to support either version of the EWM. Copyright 1987 by University of Chicago Press.