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International Comparisons of Inter-industry Wage Differentials

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Author Info
Gittleman, Maury
Wolff, Edward N

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Abstract

We use OECD data to examine inter-industry wage differentials (relative wages among industries) for 14 OECD countries over the period 1970-85. We find, first, that the industrial wage structures have shown remarkable stability over time in terms of rank order for all the countries in the sample. Second, despite their rank order stability, wage structures show a tendency to expand or contract. While the U.S. has shown increasing industry wage dispersion between 1970 and 1985, the pattern is very mixed for other countries. Unionization is a significant factor in explaining cross-country differences. Third, industry wage rankings show some evidence of becoming increasingly similar across nations over time, and this movement is associated with a convergence of per capita incomes. Fourth, industry wage differentials are positively related to an industry's productivity growth, output growth, capital intensity, and export orientation. Copyright 1993 by The International Association for Research in Income and Wealth.

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Publisher Info
Article provided by Blackwell Publishing in its journal Review of Income & Wealth.

Volume (Year): 39 (1993)
Issue (Month): 3 (September)
Pages: 295-312
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Handle: RePEc:bla:revinw:v:39:y:1993:i:3:p:295-312

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  1. John P. Haisken-DeNew & Christoph M. Schmidt, 1999. "Industry Wage Differentials Revisited: A Longitudinal Comparison of Germany and USA (1984-1996)," IZA Discussion Papers 98, Institute for the Study of Labor (IZA). [Downloadable!]
  2. Kam-Ki Tang & Yi-Ping Tseng, 2004. "Industry-specific human capital, knowledge labour, and industry wage structure in Taiwan," Applied Economics, Taylor and Francis Journals, vol. 36(2), pages 155-164, February. [Downloadable!] (restricted)
  3. Peter Hooper & Elizabeth Vrankovich, 1995. "International comparisons of the levels of unit labor costs in manufacturing," International Finance Discussion Papers 527, Board of Governors of the Federal Reserve System (U.S.). [Downloadable!]
  4. Futoshi Yamauchi-K., 2000. "Labor Earnings Inequality and Learning About Individual Ability: Theory and Evidence from Japan and the United States," Econometric Society World Congress 2000 Contributed Papers 0782, Econometric Society. [Downloadable!]
  5. André Luiz Sacconato & Naércio Aquino de Menezes-Filho, 2001. "A Diferença Salarial entre os Trabalhadores Americanos e Brasileiros: uma Análise Com Micro Dados," Anais do XXIX Encontro Nacional de Economia [Proceedings of the 29th Brazilian Economics Meeting] 095, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics]. [Downloadable!]
  6. Genre, Véronique & Kohn, Karsten & Momferatou, Daphne, 2009. "Understanding Inter-Industry Wage Structures in the Euro Area," IZA Discussion Papers 4114, Institute for the Study of Labor (IZA). [Downloadable!]
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  7. Fields, J. & Wolff, E.N., 1993. "Industry Wage Differentials and the Gender Wage Gap," Working Papers 93-25, C.V. Starr Center for Applied Economics, New York University. [Downloadable!]
  8. Alan Carruth & Bill Collier & Andy Dickerson, 1999. "Inter-industry Wage Differences and Individual Heterogeneity: How Competitive is Wage Setting in the UK?," Studies in Economics 9914, Department of Economics, University of Kent. [Downloadable!]
  9. Judith Fields & Edward N. Wolff, 1997. "Gender Wage Differentials, Affirmative Action, and Employment Growth on the Industry Level," Macroeconomics 9711005, EconWPA. [Downloadable!]
  10. Jorge Saba Arbache & Andrew Dickerson & Francis Green, 2001. "Assessing the Stability of the Inter-industry Wage Structure in the Face of Radical Economic Reforms," Studies in Economics 0103, Department of Economics, University of Kent. [Downloadable!]
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  11. François Rycx & Ilan Tojerow & Daphné Valsamis, 2008. "Wage differentials across sectors in Europe: an east-west comparison," Working Papers DULBEA 08-17.RS, Université libre de Bruxelles, Department of Applied Economics (DULBEA). [Downloadable!]
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  12. Jorge Saba Arbache, 1998. "How do Economic Reforms affect the Structure of Wages? The Case of Brazilian Manufacturing, 1984-1996," Studies in Economics 9817, Department of Economics, University of Kent. [Downloadable!]
  13. A. J. Julius, 2005. "The wage-wage-...-wage-profit relation in a multisector bargaining economy," GE, Growth, Math methods 0501003, EconWPA. [Downloadable!]
  14. Robert E. Lipsey & Birgitta Swedenborg, 2000. "Wage Dispersion and Country Price Levels," NBER Working Papers 6039, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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