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Firm level evidence of efficiency wages and labor turnover in Colombia's manufacturing industry

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Rodrigo Taborda ()
Juan Carlos Guataqui ()

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Abstract

Working on data of 1241 incumbent firms of the Colombian manufacturing industry this paper tests the hypothesis proposed in models relating turnover and efficiency wage theory. We find evidence of a substantial number of firms paying wages above the industry average and its effect on turn over in firms employment. ********************************************************************** Trabajando con datos de 1241 empresas permanentes de la industria manufacturera de Colombia, el artículo pone a prueba la hipótesis de modelos que relacionan la rotación laboral con salarios de eficiencia. Encontramos evidencia de un número sustancial de empresas que pagan salarios por encima del promedio de su industria y su efecto en la rotación del empleo al interior de las firmas.

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Paper provided by UNIVERSIDAD DEL ROSARIO - FACULTAD DE ECONOMÍA in its series BORRADORES DE INVESTIGACIÓN with number 002729.

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Length: 22
Date of creation: 03 Sep 2003
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Handle: RePEc:col:000091:002729

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  1. Munasinghe, Lalith, 2000. "Wage Growth and the Theory of Turnover," Journal of Labor Economics, University of Chicago Press, vol. 18(2), pages 204-20, April. [Downloadable!] (restricted)
  2. Luis Eduardo Arango & Carlos Esteban Posada, 2001. "Unemployment Rate And The Real Wage Behavior: A Neoclassical Hint For The Colombian Labor Market Adjustment," BORRADORES DE ECONOMIA 003736, BANCO DE LA REPÚBLICA. [Downloadable!]
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  3. Juan Manuel Julio, 2001. "How Uncertain are NAIRU Estimates in Colombia?," BORRADORES DE ECONOMIA 002798, BANCO DE LA REPÚBLICA. [Downloadable!]
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  4. Katz, Lawrence F, 1988. "Some Recent Developments in Labor Economics and Their Implications for Macroeconomics," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 20(3), pages 507-22, August. [Downloadable!] (restricted)
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  5. Luis Eduardo Arango T. & Carlos Esteban Posada, 2001. "El Desempleo En Colombia," BORRADORES DE ECONOMIA 002495, BANCO DE LA REPÚBLICA. [Downloadable!]
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  6. Orlando Gracia & Gustavo Hernández & Juan Mauricio Ramirez, 2001. "Diferenciales salariales y mercados laborales en la industria colombiana," REVISTA DESARROLLO Y SOCIEDAD, UNIVERSIDAD DE LOS ANDES-CEDE. [Downloadable!]
  7. Campbell, Carl M, III, 1993. "Do Firms Pay Efficiency Wages? Evidence with Data at the Firm Level," Journal of Labor Economics, University of Chicago Press, vol. 11(3), pages 442-70, July. [Downloadable!] (restricted)
  8. Stiglitz, Joseph E, 1974. "Alternative Theories of Wage Determination and Unemployment in LDC'S: The Labor Turnover Model," The Quarterly Journal of Economics, MIT Press, vol. 88(2), pages 194-227, May. [Downloadable!] (restricted)
  9. Yellen, Janet L, 1984. "Efficiency Wage Models of Unemployment," American Economic Review, American Economic Association, vol. 74(2), pages 200-205, May. [Downloadable!] (restricted)
  10. Konings, Jozef & Walsh, Patrick P, 1994. "Evidence of Efficiency Wage Payments in UK Firm Level Panel Data," Economic Journal, Royal Economic Society, vol. 104(424), pages 542-55, May. [Downloadable!] (restricted)
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  11. Campbell, Carl M, III & Kamlani, Kunal S, 1997. "The Reasons for Wage Rigidity: Evidence from a Survey of Firms," The Quarterly Journal of Economics, MIT Press, vol. 112(3), pages 759-89, August.
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