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Abstract 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. This content is only available as a PDF. Author notes 1 Useful discussions with Gérard Chambas, Patrick Plane and Léo Sleuwaegen are gratefull acknowledged, as well as the comments by two anonymous referees, with the usual disclaimer. © Centre for the Study of African Economies
Journal of African Economies – Oxford University Press
Published: Oct 1, 1997
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