Efficiency Wages, Deferred Payments, and Direct Incentives in Agriculture

12 Pages Posted: 31 Mar 2020

See all articles by Enrico Moretti

Enrico Moretti

University of California, Berkeley - Department of Economics; National Bureau of Economic Research (NBER); IZA Institute of Labor Economics

Jeffrey M. Perloff

University of California, Berkeley - Department of Agricultural & Resource Economics

Multiple version iconThere are 2 versions of this paper

Date Written: November 2002

Abstract

Empirical evidence from agricultural labor markets is consistent with efficiency‐wage theory and inconsistent with several alternative explanations. According to this theory, the higher wage or deferred payment (benefits) that direct‐hire growers pay relative to that of farm labor contractors is an efficiency wage. Growers use this extra compensation to lower their monitoring expenses and reduce shirking by workers.

Keywords: deferred payments, efficiency wage, incentives, J410, J430

Suggested Citation

Moretti, Enrico and Perloff, Jeffrey M., Efficiency Wages, Deferred Payments, and Direct Incentives in Agriculture (November 2002). American Journal of Agricultural Economics, Vol. 84, Issue 4, pp. 1144-1155, 2002, Available at SSRN: https://ssrn.com/abstract=3564550 or http://dx.doi.org/10.1111/1467-8276.00060

Enrico Moretti (Contact Author)

University of California, Berkeley - Department of Economics ( email )

549 Evans Hall #3880
Berkeley, CA 94720-3880
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HOME PAGE: http://emlab.berkeley.edu/~moretti/

National Bureau of Economic Research (NBER)

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IZA Institute of Labor Economics

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Jeffrey M. Perloff

University of California, Berkeley - Department of Agricultural & Resource Economics ( email )

207 Giannini Hall
Berkeley, CA 94720
United States
510-642-9574 (Phone)
510-643-8911 (Fax)

HOME PAGE: http://are.berkeley.edu/~perloff

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