IDEAS home Printed from https://ideas.repec.org/a/sae/ilrrev/v64y2011i2p356-374.html
   My bibliography  Save this article

Inter-Industry Wage Differentials Job Content and Unobserved Ability

Author

Listed:
  • Maury Gittleman
  • Brooks Pierce

Abstract

The authors estimate inter-industry wage differentials using the Bureau of Labor Statistics's National Compensation Survey (NCS) dataset. The NCS dataset has a number of distinct advantages over household survey datasets typically used for this purpose, in part because its establishment data contain information on job content and more accurate measures of industry and occupation. The authors find that controlling for job functions substantially lowers inter-industry wage variation. To the extent that job function proxies for productivity, a substantial portion of inter-industry wage variation may be explained by worker sorting on (observed) ability.

Suggested Citation

  • Maury Gittleman & Brooks Pierce, 2011. "Inter-Industry Wage Differentials Job Content and Unobserved Ability," ILR Review, Cornell University, ILR School, vol. 64(2), pages 356-374, January.
    • Handle: RePEc:sae:ilrrev:v:64:y:2011:i:2:p:356-374
    DOI: 10.1177/001979391106400208
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/001979391106400208
    Download Restriction: no
    File URL: https://libkey.io/10.1177/001979391106400208?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Joseph G. Altonji & Todd E. Elder & Christopher R. Taber, 2005. "Selection on Observed and Unobserved Variables: Assessing the Effectiveness of Catholic Schools," Journal of Political Economy, University of Chicago Press, vol. 113(1), pages 151-184, February.
    2. David H. Autor & Frank Levy & Richard J. Murnane, 2003. "The skill content of recent technological change: an empirical exploration," Proceedings, Federal Reserve Bank of San Francisco, issue Nov.
    3. McKinley Blackburn & David Neumark, 1992. "Unobserved Ability, Efficiency Wages, and Interindustry Wage Differentials," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(4), pages 1421-1436.
    4. Robert Gibbons & Lawrence Katz, 1992. "Does Unmeasured Ability Explain Inter-Industry Wage Differentials?," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 59(3), pages 515-535.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jan Kluge & Michael Weber, 2015. "Decomposing the German East-West wage gap," ifo Working Paper Series 205, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    2. Maury Gittleman & Brooks Pierce, 2012. "Compensation for State and Local Government Workers," Journal of Economic Perspectives, American Economic Association, vol. 26(1), pages 217-242, Winter.
    3. Morris M. Kleiner & Wenchen Wang, 2023. "The Labor Market Effects of Occupational Licensing in the Public Sector," Staff Report 645, Federal Reserve Bank of Minneapolis.
    4. Antje Schubert & Johannes Steinbrecher & Marcel Thum & Michael Weber, 2016. "The Impact of the Statutory Minimum Wage Act in Saxony," ifo Dresden Studien, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 77.
    5. David H. Autor & David Dorn & Gordon H. Hanson & Jae Song, 2014. "Trade Adjustment: Worker-Level Evidence," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 129(4), pages 1799-1860.
    6. Jones, Todd R. & Kofoed, Michael S., 2020. "Do peers influence occupational preferences? Evidence from randomly-assigned peer groups at West Point," Journal of Public Economics, Elsevier, vol. 184(C).
    7. Alec Levenson & Cindy Zoghi, 2010. "Occupations, Human Capital and Skills," Journal of Labor Research, Springer, vol. 31(4), pages 365-386, December.
    8. Maury Gittleman & Brooks Pierce, 2015. "Pay for Performance and Compensation Inequality: Evidence from the ECEC," ILR Review, Cornell University, ILR School, vol. 68(1), pages 28-52, January.
    9. Maury Gittleman & Brooks Pierce, 2012. "Inter-Industry Compensation Differentials," Working Papers 453, U.S. Bureau of Labor Statistics.
    10. Jan Kluge & Michael Weber, 2018. "Decomposing the German East–West wage gap," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 26(1), pages 91-125, January.
    11. Scotton Carol R., 2013. "New risk rates, inter-industry differentials and the magnitude of VSL estimates," Journal of Benefit-Cost Analysis, De Gruyter, vol. 4(1), pages 39-80, March.
    12. Simon Eisele & Martin R. Schneider, 2020. "What Do Unions Do to Work Design? Computer Use, Union Presence, and Tayloristic Jobs in Britain," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 59(4), pages 604-626, October.
    13. Gittleman, Maury & Pierce, Brooks Pierce, 2013. "An improved measure of inter-industry pay differentials," Journal of Economic and Social Measurement, IOS Press, issue 3, pages 229-242.
    14. Maury Gittleman & Kristen Monaco & Nicole Nestoriak, 2017. "The Requirements of Jobs: Evidence from a Nationally Representative Survey," NBER Chapters, in: Education, Skills, and Technical Change: Implications for Future US GDP Growth, pages 183-215, National Bureau of Economic Research, Inc.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shim, Myungkyu & Yang, Hee-Seung, 2018. "Interindustry wage differentials, technology adoption, and job polarization," Journal of Economic Behavior & Organization, Elsevier, vol. 146(C), pages 141-160.
    2. Youjin Hahn & Myungkyu Shim & Hee-Seung Yang, 2021. "Industry Variations in Health Plans and Dynamic Employment Substitution," Journal of Labor Research, Springer, vol. 42(3), pages 449-467, December.
    3. Sauro Mocetti & Marcello Pagnini & Enrico Sette, 2017. "Information Technology and Banking Organization," Journal of Financial Services Research, Springer;Western Finance Association, vol. 51(3), pages 313-338, June.
    4. Alexander Muravyev, 2007. "Firm Size, Wages and Unobserved Skills: Evidence from Dual Job Holdings in the UK," Discussion Papers of DIW Berlin 681, DIW Berlin, German Institute for Economic Research.
    5. Nicholas W Papageorge & Kevin Thom, 2020. "Genes, Education, and Labor Market Outcomes: Evidence from the Health and Retirement Study," Journal of the European Economic Association, European Economic Association, vol. 18(3), pages 1351-1399.
    6. George J. Borjas & Valerie A. Ramey, 2000. "Market Responses to Interindustry Wage Differentials," NBER Working Papers 7799, National Bureau of Economic Research, Inc.
    7. Matthew Cole & Robert Elliott & Joanne Lindley, 2009. "Dirty money: Is there a wage premium for working in a pollution intensive industry?," Journal of Risk and Uncertainty, Springer, vol. 39(2), pages 161-180, October.
    8. Ralph Stinebrickner & Todd Stinebrickner & Paul Sullivan, 2019. "Job Tasks, Time Allocation, and Wages," Journal of Labor Economics, University of Chicago Press, vol. 37(2), pages 399-433.
    9. Bhaskar, V. & To, Ted, 2003. "Oligopsony and the distribution of wages," European Economic Review, Elsevier, vol. 47(2), pages 371-399, April.
    10. Antoni, Manfred & Janser, Markus & Lehmer, Florian, 2015. "The hidden winners of renewable energy promotion: Insights into sector-specific wage differentials," Energy Policy, Elsevier, vol. 86(C), pages 595-613.
    11. Sergei Guriev & Biagio Speciale & Michele Tuccio, 2019. "How do Regulated and Unregulated Labor Markets Respond to Shocks? Evidence from Immigrants During the Great Recession," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 35(1), pages 37-76.
    12. Leyla Mocan, 2014. "The Impact of Education on Wages: Analysis of an Education Reform in Turkey," Koç University-TUSIAD Economic Research Forum Working Papers 1424, Koc University-TUSIAD Economic Research Forum.
    13. Gokhale, Jagadeesh & Groshen, Erica L & Neumark, David, 1995. "Do Hostile Takeovers Reduce Extramarginal Wage Payments?," The Review of Economics and Statistics, MIT Press, vol. 77(3), pages 470-485, August.
    14. John Burger & Stephen Walters, 2008. "Testing Fair Wage Theory," Journal of Labor Research, Springer, vol. 29(4), pages 318-332, December.
      • John D. Burger & Stephen J.K. Walters, 2006. "Testing Fair Wage Theory," Working Papers 0623, International Association of Sports Economists;North American Association of Sports Economists.
    15. Robert Gibbons & Lawrence F. Katz & Thomas Lemieux & Daniel Parent, 2005. "Comparative Advantage, Learning, and Sectoral Wage Determination," Journal of Labor Economics, University of Chicago Press, vol. 23(4), pages 681-724, October.
    16. Marc A. C. Hafstead & Roberton C. Williams III, 2020. "Jobs and Environmental Regulation," Environmental and Energy Policy and the Economy, University of Chicago Press, vol. 1(1), pages 192-240.
    17. Ferreira, Priscila, 2009. "The sources of interindustry wage differentials," ISER Working Paper Series 2009-13, Institute for Social and Economic Research.
    18. Christina Håkanson & Erik Lindqvist & Jonas Vlachos, 2021. "Firms and Skills: The Evolution of Worker Sorting," Journal of Human Resources, University of Wisconsin Press, vol. 56(2), pages 512-538.
    19. Hugo Castro-Silva & Francisco Lima, 2023. "The struggle of small firms to retain high-skill workers: job duration and the importance of knowledge intensity," Small Business Economics, Springer, vol. 60(2), pages 537-572, February.
    20. Edoardo M. Acabbi & Ettore Panetti & Alessandro Sforza, 2019. "The Financial Channels of Labor Rigidities: Evidence from Portugal," GEE Papers 0138, Gabinete de Estratégia e Estudos, Ministério da Economia, revised Dec 2019.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:ilrrev:v:64:y:2011:i:2:p:356-374. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.ilr.cornell.edu .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.