Journal Article

Efficiency Wage and Supervision: Theory and Application to the Ivorian Manufacturing Sector

Jean-Paul Azam and Jean-Yves Lesueur

in Journal of African Economies

Volume 6, issue 3, pages 445-462
Published in print October 1997 | ISSN: 0963-8024
Published online October 1997 | e-ISSN: 1464-3723 | DOI: http://dx.doi.org/10.1093/oxfordjournals.jae.a020936
Efficiency Wage and Supervision: Theory and Application to the Ivorian Manufacturing Sector

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A simple model is set up to analyse the tradeoff between wage and monitoring costs in an eficiency-wageframework. It is then applied to a panel of firms in the Ivorian manufacturing sector, split in different industries. The parameter restrictions derived from the theoretical model are not rejected for the investment goods, the intermediate goods and the non-food consumption goods sectors, while some puzzling results are found for the food and agro-industrial sectors.

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Subjects: Development Studies ; Economic Development ; African Studies

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