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Are Occupations Paid What They are Worth? An Econometric Study of Occupational Wage Inequality and Productivity

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  • Stephan Kampelmann
  • François Rycx

    ()

Abstract

Labour economists typically assume that pay differences between occupations can be explained with variations in productivity. The empirical evidence on the validity of this assumption is surprisingly thin and subject to various potential biases. The authors use matched employer-employee panel data from Belgium for the years 1999–2006 to examine occupational productivity-wage gaps. They find that occupations play distinct roles for remuneration and productivity: while the estimations indicate a significant upward-sloping occupational wage-profile, the hypothesis of a flat productivity-profile cannot be rejected. The corresponding pattern of over- and underpayment stands up to a series of robustness tests. Copyright Springer Science+Business Media New York 2012

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Bibliographic Info

Article provided by Springer in its journal De Economist.

Volume (Year): 160 (2012)
Issue (Month): 3 (September)
Pages: 257-287

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Handle: RePEc:kap:decono:v:160:y:2012:i:3:p:257-287

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Web page: http://www.springerlink.com/link.asp?id=100260

Related research

Keywords: Labour productivity; Wages; Occupations; Production function; Matched employer-employee data; J24; J31; J44;

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Citations

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Cited by:
  1. Andrea Garnero & François Rycx, 2013. "The heterogeneous effects of workforce diversity on productivity, wages and profits," Working Papers CEB, ULB -- Universite Libre de Bruxelles 13-015, ULB -- Universite Libre de Bruxelles.
  2. Garnero, Andrea & Kampelmann, Stephan & Rycx, Francois, 2013. "Part-time Work, Wages and Productivity: Evidence from Belgian Matched Panel Data," IZA Discussion Papers 7789, Institute for the Study of Labor (IZA).
  3. Maliranta, Mika, 2013. "Globalization, occupational restructuring and firm performance," ETLA Working Papers, The Research Institute of the Finnish Economy 5, The Research Institute of the Finnish Economy.

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