Government Contracting and Wage Compliance

50 Pages Posted: 4 Sep 2021 Last revised: 18 Oct 2024

See all articles by Justin Chircop

Justin Chircop

Lancaster University Management School; University of Malta

Monika Tarsalewska

University of Exeter Business School

Agnieszka Trzeciakiewicz

School for Business and Society - University of York

Date Written: December 9, 2022

Abstract

This study investigates the relationship between government contracting and wage compliance in the United States. We find that firms which are awarded government contracts experience a significant improvement in wage compliance i.e. we observe a reduction in wage theft. This relationship is primarily driven by enhancements in contractors’ internal processes, particularly improvements in financial reporting. Cross-sectional analysis suggests that this relation is more pronounced when there is greater scope for government monitoring of its suppliers, and suppliers have less incentives to engage with unethical practices.

Keywords: government procurement, wage theft, employee wellbeing

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

Suggested Citation

Chircop, Justin and Tarsalewska, Monika and Trzeciakiewicz, Agnieszka,

Government Contracting and Wage Compliance

(December 9, 2022). 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

University of Malta ( email )

Msida MSD 2080
Msida MSD 06
Malta

Monika Tarsalewska (Contact Author)

University of Exeter Business School ( email )

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

Agnieszka Trzeciakiewicz

School for Business and Society - University of York ( email )

Heslington
York, Yorkshire YO10 5DD
United Kingdom

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