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Technology, Labor Characteristic and Wage-productivity Gaps

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  • Ilmakunnas, Pekka
  • Maliranta, Mika

Abstract

We use plant-level employer-employee data in production functions and wage equations to examine whether wages are based on productivity. We use a stepwise procedure to find out how the results are influenced by the kind of data that is available. The models include shares of employee groups based on age, level and field of education, and sex. The gap between the age-related wage and productivity effects increases with age. Education increases productivity, but wage under-compensates productivity especially for those with the highest level of non-technical education. For women the results depend greatly on the specification and method used. Copyright 2005 Blackwell Publishing Ltd.

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Bibliographic Info

Paper provided by The Research Institute of the Finnish Economy in its series Discussion Papers with number 860.

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Length: 27 pages
Date of creation: 2003
Date of revision:
Handle: RePEc:rif:dpaper:860

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