A model of employee monitoring technology and income inequality

Adams, Joshua (2015). A model of employee monitoring technology and income inequality Honours Thesis, School of Economics, The University of Queensland.

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Author Adams, Joshua
Thesis Title A model of employee monitoring technology and income inequality
School, Centre or Institute School of Economics
Institution The University of Queensland
Publication date 2015-11-09
Thesis type Honours Thesis
Supervisor John Quiggin
Total pages 76
Language eng
Subjects 14 Economics
Abstract/Summary Since the 1980s the of rise personal computers, GPS devices and other electronics in the workplace has made employee monitoring an easier task. During this period many measures of income inequality have increased both in the United States and internationally. I construct an efficiency wage model of a firm who cannot directly observe the effort level of output of individual workers who are heterogeneous in the dis-utility they experience from supplying effort. The firm employs a costly, imperfect monitoring technology to discipline them and selects the intensity of monitoring and their wage to induce optimal levels of effort. Within this model I find that decreases in the cost of monitoring have distributional consequences similar to those observed in recent decades including an increase in the share of income going to profits.
Keyword Employee behaviour
Income inequality
Employee Monitoring

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Created: Thu, 14 Jan 2016, 12:05:52 EST by Heidi Ellis on behalf of School of Economics