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Interindustry Wage Differentials and Efficiency Wages: Some Canadian Evidence

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Author Info

  • Surendra Gera
  • Gilles Grenier

Abstract

Using the 1986 Labour Market Activity Survey as their major source of data, the authors estimate interindustry wage differentials in Canada at the one- and two-digit levels of industry aggregation for various types of workers. The major findings are that substantial interindustry wage differentials exist and are relatively stable over time; that the pattern of interindustry wage differentials is very similar for different kinds of workers; and that these differentials cannot be explained easily by compensating factors. The differentials seem to be consistent with the rent-sharing explanations of the labor market, such as those based on the notion of efficiency wages.

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Bibliographic Info

Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

Volume (Year): 27 (1994)
Issue (Month): 1 (February)
Pages: 81-100

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Handle: RePEc:cje:issued:v:27:y:1994:i:1:p:81-100

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Citations

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Cited by:
  1. Schaik, A.B.T.M. van & Groot, H.L.F. de, 2000. "Unemployment, growth and efficiency wages," Open Access publications from Tilburg University urn:nbn:nl:ui:12-83963, Tilburg University.
  2. Cherry, Todd L. & Tsournos, Pete T., 2001. "Family Ties, Labor Mobility and Interresgional Wage Differentials," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 31(1).
  3. Matti Virén, 2005. "Why do capital intensive companies pay higher wages?," Labor and Demography 0508014, EconWPA.
  4. Louis Christofides & Amy Chen Peng, 2007. "Real Wage Chronologies," CESifo Working Paper Series 2096, CESifo Group Munich.
  5. Matti Viren, 2006. "Higher wages and capital intensity: a closer look," Discussion Papers 13, Aboa Centre for Economics.
  6. Hartog, Joop & Pereira, Pedro T. & Vieira, José A. Cabral, 1999. "Inter-industry Wage Dispersion in Portugal: high but falling," IZA Discussion Papers 53, Institute for the Study of Labor (IZA).
  7. Yang, Sheng-Ping & DeBeaumont, Ronald, 2010. "Pay as incentive or pay as reward? The case of Taiwan," Journal of Asian Economics, Elsevier, vol. 21(1), pages 76-86, February.
  8. Henri L.F. de Groot & Anton B.T.M. van Schaik, 2002. "Unemployment, Growth and the Organisation of Work," Tinbergen Institute Discussion Papers 02-017/3, Tinbergen Institute.
  9. Amy Peng & Louis N. Christofides, 2009. "Real Wage Chronology," Working Papers 011, Ryerson University, Department of Economics.
  10. Lundin, Nan Nan & Yun, Lihong, 2004. "International Trade and Inter-Industry Wage Structure in Swedish Manufacturing - Evidence from matched employer-employee data," Working Paper Series 196, Trade Union Institute for Economic Research.
  11. Joop Hartog & Pedro Pereira & José Vieira, 2000. "Inter-industry Wage Dispersion in Portugal," Empirica, Springer, vol. 27(4), pages 353-364, December.
  12. Surendra Gera & Kurt Mang, 1998. "The Knowledge-Based Economy: Shifts in Industrial Output," Canadian Public Policy, University of Toronto Press, vol. 24(2), pages 149-184, June.
  13. Vesna Stavrevska, 2011. "The efficiency wages perspective to wage rigidity in the open economy: a survey," International Journal of Manpower, Emerald Group Publishing, vol. 32(3), pages 273-299, July.
  14. Groot, H.L.F. de & Schaik, A.B.T.M. van, 1997. "Unemployment and catching up: Europe vis à vis the USA," Open Access publications from Tilburg University urn:nbn:nl:ui:12-73836, Tilburg University.
  15. Henri L.F. de Groot & Anton B.T.M. van Schaik, 2002. "Unemployment, Growth and the Organisation of Work," Tinbergen Institute Discussion Papers 02-017/3, Tinbergen Institute.
  16. Virén , Matti, 2005. "Why do capital intensive companies pay higher wages?," Research Discussion Papers 5/2005, Bank of Finland.
  17. Sakellariou, Chris N., 1995. "Human capital and industry wage structure in Guatemala," Policy Research Working Paper Series 1445, The World Bank.

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