Product Quality and Worker Quality
AbstractWe 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 InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 1233.
Date of creation: Sep 1995
Date of revision:
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Other versions of this item:
- J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
- L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
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