Efforts and Wages: A New Look at the Inter-Industry Wage Differentials
AbstractWe provide evidence that US workers face a wage-effort offer curve with the high-wage high-effort jobs occurring in the capital intensive sectors. We find that real wage offers rose at every level of effort during the 1960's, a shift which is consistent with a decline in the rental cost of capital. During the 1970's, when relative prices of labor-intensive goods declined, the wage-effort offer curve twisted, offering lower pay for the low-paid jobs in the labor-intensive sectors but higher pay for the high-paid jobs in the capital-intensive sectors. In the 1980's, workers at every wage level began to work more hours for the same weekly wage. This we loosely attribute either to the increasing cost of non-wage benefits, especially health care, or to the introduction of new equipment. In studying the wage-effort offer curve rate of unionization, education, and rent sharing.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 6626.
Date of creation: Jun 1998
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Publication status: published as Edward E. Leamer, Christopher F. Thornberg. "Effort and Wages: A New Look at the Interindustry Wage Differentials ," in Robert C. Feenstra, editor, "The Impact of International Trade on Wages" University of Chicago Press (2000)
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- Edward E. Leamer & Christopher F. Thornberg, 2000. "Effort and Wages: A New Look at the Interindustry Wage Differentials," NBER Chapters, in: The Impact of International Trade on Wages, pages 37-84 National Bureau of Economic Research, Inc.
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
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