| Article ID: | iaor2004203 |
| Country: | United States |
| Volume: | 84 |
| Issue: | 4 |
| Start Page Number: | 1144 |
| End Page Number: | 1155 |
| Publication Date: | Nov 2002 |
| Journal: | American Journal of Agricultural Economics |
| Authors: | Moretti E., Perloff J.M. |
| Keywords: | financial |
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.