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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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Publisher 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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  2. 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. [Downloadable!] (restricted)
  3. Groot, H.L.F. de & Schaik, A.B.T.M. van, 1995. "Relative Convergence in a Dual Economy with Tradeable and Non-Tradeable Goods," Discussion Paper 43, Tilburg University, Center for Economic Research. [Downloadable!]
  4. Sakellariou, Chris N., 1995. "Human capital and industry wage structure in Guatemala," Policy Research Working Paper Series 1445, The World Bank. [Downloadable!]
  5. Schaik, A.B.T.M. van & Groot, H.L.F. de, 1995. "Unemployment and Endogenous Growth," Discussion Paper 75, Tilburg University, Center for Economic Research. [Downloadable!]
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