Human capital and industry wage structure in Guatemala
AbstractThe presence and persistence of substantial wage differentials between industries has been documented. Differences between industries could result from (1) the normal functioning of competitive labor markets (compensating differential levels of human capital), (2) institutional factors, such as the presence of a union, and (3) efficiency wages paid on some industries (employers finding they can increase profits by paying workers above-market wages). Using the testable model of endogenous growth, the author analyzes microdata from the Guatemala Household Survey to estimate the external effects of education. First, he estimates a wage equation and filters out the internal effects of education. Then, to isolate external effects, he regresses the resulting wage premiums in industry on average human capital as well as on industry-specific characteristics. Stronger conclusions cannot be drawn, but the analysis does not reject the hypothesis that external effects are present.
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Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 1445.
Date of creation: 30 Apr 1995
Date of revision:
Banks&Banking Reform; Water and Industry; Public Health Promotion; Health Monitoring&Evaluation; Labor Policies; Health Monitoring&Evaluation; Banks&Banking Reform; Economic Theory&Research; Environmental Economics&Policies; Water and Industry;
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