SHIRKINGTo this point, I have discussed only known consumption on the job by individual employees. In a model of the firm in which monitoring cost is zero, this would be the only possible on-the-job consumption; each quality of worker, including managers, receives his market-determined wage, but the way in which that wage is received depends on whether the worker prefers to consume on the job or at home. Once we turn to a model of the firm in which monitoring cost is positive, the inverse correlation between take-home wages and on-the-job consumption is weakened, at least in the case of the individual worker. If positive monitoring cost means anything, it certainly means the weakening of this inverse cor- relation.