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Interindustry Wage Differences: An Empirical Review

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  • Miguel Ricaurte

Abstract

Under competitive labor markets, workers should be paid according to their productivity, regardless ofother personal characteristics. This, however, is not the case and has been widely reported in the literature. This paper reviews empirical evidence and methods of estimation for sectoral wage differentials. Moreover, it showsestimates of such differentials for the United States using CPS data from 1968 to 2008. The presence of industry wage differentials is certain, although under certain econometric techniques, its magnitude is reduced in favor of unobserved worker and firm characteristics.

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Bibliographic Info

Paper provided by Central Bank of Chile in its series Working Papers Central Bank of Chile with number 525.

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Date of creation: Aug 2009
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Handle: RePEc:chb:bcchwp:525

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Cited by:
  1. Patrick Enu & Edmond Hagan & Eunice Ahouandjinou & Prudence Attah-Obeng, 2014. "Relationship between Education and Wage differentials in Ghana: A Case Study of Accra - a Suburb of greater Accra Region," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 4(1), pages 277-294, January.
  2. Lavopa, Alejandro & Szirmai, Adam, 2012. "Industrialization, employment and poverty," MERIT Working Papers 081, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  3. Miguel Ricaurte, 2010. "The Role of Labor Markets in Structural Change," Working Papers Central Bank of Chile 584, Central Bank of Chile.

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