Government Procurement and Wage Theft

50 Pages Posted: 4 Sep 2021 Last revised: 17 Sep 2021

See all articles by Justin Chircop

Justin Chircop

Lancaster University Management School

Monika Tarsalewska

University of Exeter Business School

Agnieszka Trzeciakiewicz

Hull University Business School

Date Written: September 2, 2021

Abstract

Wage theft is the largest form of theft committed in the U.S. Typical violations related to wage theft include the lack of payment for overtime hours or forcing employees to underreport hours worked. We find that government contracting has an important effect on firm employees as it reduces wage theft. The reduction in wage theft is due to improvements in reporting and monitoring. Firms with government contracts have less restatements and the effect is stronger for contracts that are subject to increased government oversight. Finally, in order to mitigate endogeneity concerns we perform differences-in-differences identification tests based on first time contractors and the Obama Administration government contracting reform. This study contributes to extant literature examining the consequences of government contracting.

Keywords: government procurement, wage theft, employee wellbeing, sustainability

JEL Classification: G18, G38, G39, J31, J83, M14, M41

Suggested Citation

Chircop, Justin and Tarsalewska, Monika and Trzeciakiewicz, Agnieszka, Government Procurement and Wage Theft (September 2, 2021). Available at SSRN: https://ssrn.com/abstract=3916088 or http://dx.doi.org/10.2139/ssrn.3916088

Justin Chircop

Lancaster University Management School ( email )

Lancaster University
Lancaster, Lancashire LA1 4YX
United Kingdom

Monika Tarsalewska (Contact Author)

University of Exeter Business School ( email )

Streatham Court, Streatham Campus,
Rennes Drive
Exeter, Devon EX4 4PU
United Kingdom

Agnieszka Trzeciakiewicz

Hull University Business School ( email )

University of Hull
Cottingham Road
Hull, Yorkshire HU6 7RX
United Kingdom

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