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Product Quality and Worker Quality

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  • Abowd, John M
  • Kramarz, Francis

Abstract

We study the relation between product quality and worker quality using an economic model that, under certain conditions, provides a direct link between product price, product quality and work-force quality. Our measures of product quality are the evolution in the detailed product price relative to its product group, and the level of the product price relative to this group. Our worker quality measures are the firm's average person effect and personal characteristics effect from individual wage rates. We find a very weak, generally positive, relation between worker quality and product quality using detailed firm-level data from the French Producer Price Index surveys.

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 1233.

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Date of creation: Sep 1995
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Handle: RePEc:cpr:ceprdp:1233

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Related research

Keywords: Product Quality; Wages; Worker Quality;

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References

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  1. Kremer, Michael, 1993. "The O-Ring Theory of Economic Development," The Quarterly Journal of Economics, MIT Press, vol. 108(3), pages 551-75, August.
  2. John M. Abowd & Bruno Crepon & Francis Kramarz & Alain Trognon, 1995. "A La Recherche des Moments Perdus: Covariance Models for Unbalanced Panels with Endogenous Death," NBER Technical Working Papers 0180, National Bureau of Economic Research, Inc.
  3. Entorf, Horst & Kramarz, Francis, 1998. "The impact of new technologies on wages : lessons from matching panels on employees and on their firms," Publications of Darmstadt Technical University, Institute of Economics (VWL) 24116, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute of Economics (VWL).
  4. Robert J. Gordon, 1990. "The Measurement of Durable Goods Prices," NBER Books, National Bureau of Economic Research, Inc, number gord90-1, October.
  5. John M. Abowd & Francis Kramarz & David N. Margolis, 1994. "High Wage Workers and High Wage Firms," NBER Working Papers 4917, National Bureau of Economic Research, Inc.
  6. Berry, Steven & Levinsohn, James & Pakes, Ariel, 1995. "Automobile Prices in Market Equilibrium," Econometrica, Econometric Society, vol. 63(4), pages 841-90, July.
  7. Doms, Mark & Dunne, Timothy & Troske, Kenneth R, 1997. "Workers, Wages, and Technology," The Quarterly Journal of Economics, MIT Press, vol. 112(1), pages 253-90, February.
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Cited by:
  1. Peter Thompson & Mihaela Pintea, 2007. "Sorting, Selection, and Industry Shakeouts," Working Papers 0702, Florida International University, Department of Economics.

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