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Product Quality and Worker Quality

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  • John M. Abowd
  • Francis Kramarz
  • Antoine Moreau

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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File URL: http://www.nber.org/papers/w5077.pdf
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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 5077.

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Date of creation: Apr 1995
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Publication status: published as John M. Abowd & Françis Kramarz & Antoine Moreau, 1996. "Product Quality and Worker Quality," Annales d'Economie et de Statistique, ADRES, issue 41-42, pages 14, Janvier-J.
Handle: RePEc:nbr:nberwo:5077

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  1. Abowd, J.M. & Kramarz, F. & Margolis, D.N., 1995. "High-Wage Workers and High-Wage Firms," Cahiers de recherche 9503, Universite de Montreal, Departement de sciences economiques.
  2. Stephen Nickell & D. Nicolitsas, 1994. "Wages," LSE Research Online Documents on Economics 51644, London School of Economics and Political Science, LSE Library.
  3. Berry, Steven & Levinsohn, James & Pakes, Ariel, 1995. "Automobile Prices in Market Equilibrium," Econometrica, Econometric Society, vol. 63(4), pages 841-90, July.
  4. Kremer, Michael, 1993. "The O-Ring Theory of Economic Development," The Quarterly Journal of Economics, MIT Press, vol. 108(3), pages 551-75, August.
  5. 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.
  6. Robert J. Gordon, 1990. "The Measurement of Durable Goods Prices," NBER Books, National Bureau of Economic Research, Inc, number gord90-1, May.
  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. GABSZEWICZ, Jean & TURRINI, Alessandro, 1999. "Workers’skills and product selection," CORE Discussion Papers 1999006, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  2. Maurice Kugler & Eric Verhoogen, 2012. "Prices, Plant Size, and Product Quality," Review of Economic Studies, Oxford University Press, vol. 79(1), pages 307-339.
  3. Stern, David I., 2010. "Energy quality," Ecological Economics, Elsevier, vol. 69(7), pages 1471-1478, May.
  4. Peter Thompson & Mihaela Pintea, 2008. "Sorting, Selection, and Industry Shakeouts," Review of Industrial Organization, Springer, vol. 33(1), pages 23-40, August.
  5. Kristensen, Nicolai & Westergård-Nielsen, Niels C., 2006. "A Large-Scale Validation Study of Measurement Errors in Longitudinal Survey Data," IZA Discussion Papers 2329, Institute for the Study of Labor (IZA).

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