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Persistence of Interindustry Wage Differentials: A Reexamination Using Matched Worker-Firm Panel Data

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Author Info
Goux, Dominique
Maurin, Eric

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Abstract

The authors estimate interindustry wage differentials using new French longitudinal data that allow a tracking of workers and their firms over time. They find that, when measured on a cross-sectional basis, they primarily reflect the interindustry variations in unmeasured labor quality. However, interindustry wage differentials are only a minor component of interfirm wage differentials. The average differential in wages paid to the same workers by different firms is about 20-30 percent. In a given industry, wage policies are more favorable to workers in large, capital-intensive firms. Copyright 1999 by University of Chicago Press.

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Publisher Info
Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 17 (1999)
Issue (Month): 3 (July)
Pages: 492-533
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Handle: RePEc:ucp:jlabec:v:17:y:1999:i:3:p:492-533

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