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A range theory of wage differentials

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Author Info
Richard A. Lester
Abstract

The unsatisfactory nature of traditional wage theory as an explanation for interfirm differences in wages is probably so well known as to need no comment. Less obvious, however, has been the nature of the analysis that could be substituted in its place. Drawing upon the empirical studies of labor markets made by, among others, Myers, Shister, Reynolds, Shultz, and himself, Professor Lester advances the hypothesis that theoretical analysis of wage structures must recognize and explain a range of wage rates as the normal characteristic of the labor market, rather than the one rate postulated by older theory as the sine qua non of equilibrium. Richard A. Lester is professor of economics, Princeton University. (Author's abstract courtesy EBSCO.)

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Publisher Info
Article provided by ILR Review, ILR School, Cornell University in its journal ILR Review.

Volume (Year): 5 (1952)
Issue (Month): 4 (July)
Pages: 483-500
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Handle: RePEc:ilr:articl:v:5:y:1952:i:4:p:483-500

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  3. Erica L. Groshen, 1988. "Why do wages vary among employers?," Economic Review, Federal Reserve Bank of Cleveland, issue Q I, pages 19-38. [Downloadable!]
  4. John W. Budd & Jozef Konings & Matthew J. Slaughter, . "International Rent Sharing in Multinational Firms," Working Papers 0202, Industrial Relations Center, University of Minnesota (Twin Cities Campus). [Downloadable!]
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  5. Marianne Bertrand & Sendhil Mullainathan, 1998. "Is There Discretion in Wage Setting? A Test Using Takeover Legislation," NBER Working Papers 6807, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  6. Armando João Dalla Costa, 2005. "Sucessão E Sucesso Nas Empresas Familiares," Working Papers 0017, Universidade Federal do Paraná, Department of Economics. [Downloadable!]
  7. Arai, Mahmood & Heyman, Fredrik, 2004. "Microdata Evidence on Rent-Sharing," Working Paper Series 198, Trade Union Institute for Economic Research. [Downloadable!]
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  8. Du Caju, Philip & Rycx, Francois & Tojerow, Ilan, 2008. "Rent-Sharing and the Cyclicality of Wage Differentials," IZA Discussion Papers 3844, Institute for the Study of Labor (IZA). [Downloadable!]
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  9. Pedro S. Martins & Luiz Alberto Esteves, 2006. "Is There Rent Sharing In Developing Countries? Matched-Panel Evidence From Brazil," Anais do XXXIV Encontro Nacional de Economia [Proceedings of the 34th Brazilian Economics Meeting] 158, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics]. [Downloadable!]
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  10. Anthony P. Thirwall, 1972. "A Cross-Section Study of Population Growth and the Growth of Output and Per Capita Income in a Production Function Framework," Working Papers 406, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
  11. John W. Budd & Jozef Konings & Matthew J. Slaughter, 2002. "Wages and International Rent Sharing in Multinational Firms," William Davidson Institute Working Papers Series 522, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
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