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Assessing the stability of the inter-industry wage structure in the face of radical economic reforms

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  • Arbache, Jorge Saba
  • Dickerson, Andy
  • Green, Francis

Abstract

We assess the stability of the wage structure in an economy experiencing substantial economic changes. We find that the structure of inter-industry wage differentials remained remarkably stable in Brazil in the face of major shocks.
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Suggested Citation

  • Arbache, Jorge Saba & Dickerson, Andy & Green, Francis, 2004. "Assessing the stability of the inter-industry wage structure in the face of radical economic reforms," Economics Letters, Elsevier, vol. 83(2), pages 149-155, May.
  • Handle: RePEc:eee:ecolet:v:83:y:2004:i:2:p:149-155
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    1. John P. Haisken-DeNew & Christoph M. Schmidt, 2000. "Interindustry and Interregion Differentials: Mechanics and Interpretation," The Review of Economics and Statistics, MIT Press, vol. 79(3), pages 516-521, August.
    2. Lam, David & Schoeni, Robert F, 1993. "Effects of Family Background on Earnings and Returns to Schooling: Evidence from Brazil," Journal of Political Economy, University of Chicago Press, vol. 101(4), pages 710-740, August.
    3. Krueger, Alan B & Summers, Lawrence H, 1988. "Efficiency Wages and the Inter-industry Wage Structure," Econometrica, Econometric Society, vol. 56(2), pages 259-293, March.
    4. Amadeo, Edward J, 1994. "Bargaining Power, Mark-Up Power, and Wage Differentials in Brazil," Cambridge Journal of Economics, Oxford University Press, vol. 18(3), pages 313-322, June.
    5. John M. Abowd & Francis Kramarz & David N. Margolis, 1999. "High Wage Workers and High Wage Firms," Econometrica, Econometric Society, vol. 67(2), pages 251-334, March.
    6. Arai, Mahmood, 1994. " An Empirical Analysis of Wage Dispersion and Efficiency Wages," Scandinavian Journal of Economics, Wiley Blackwell, vol. 96(1), pages 31-50.
    7. Gittleman, Maury & Wolff, Edward N, 1993. "International Comparisons of Inter-industry Wage Differentials," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 39(3), pages 295-312, September.
    8. Alan B. Krueger & Lawrence H. Summers, 1986. "Reflections on the Inter-Industry Wage Structure," NBER Working Papers 1968, National Bureau of Economic Research, Inc.
    9. Jeffrey Sachs & Alvaro A. Zini Jr., 1996. "Brazilian Inflation and the Plano Real," The World Economy, Wiley Blackwell, vol. 19(1), pages 13-37, January.
    10. Amadeo, Edward J., 1993. "Do relative wages move together with relative prices?," Revista Brasileira de Economia - RBE, FGV/EPGE - Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil), vol. 47(1), January.
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    Cited by:

    1. Mehta, Aashish & Hasan, Rana, 2012. "The effects of trade and services liberalization on wage inequality in India," International Review of Economics & Finance, Elsevier, vol. 23(C), pages 75-90.
    2. Naércio Aquino Menezes-Filho & Marc-Andreas Muendler & Garey Ramey, 2008. "The Structure of Worker Compensation in Brazil, with a Comparison to France and the United States," The Review of Economics and Statistics, MIT Press, vol. 90(2), pages 324-346, May.
    3. Martins, Pedro S. & Esteves, Luiz A., 2006. "Is There Rent Sharing in Developing Countries? Matched-Panel Evidence from Brazil," IZA Discussion Papers 2317, Institute for the Study of Labor (IZA).
    4. repec:ebl:ecbull:v:10:y:2008:i:9:p:1-6 is not listed on IDEAS
    5. Mehta, Aashish & Sun, Wei, 2013. "Does Industry Affiliation Influence Wages? Evidence from Indonesia and the Asian Financial Crisis," World Development, Elsevier, vol. 51(C), pages 47-61.
    6. Fernando Zanella, 2008. "Different times, different commitments, but the same old practices: failure of the efficiency wage model for socially devoted firms," Economics Bulletin, AccessEcon, vol. 10(9), pages 1-6.
    7. Rafael Camargo de Pauli & Luciano Nakabashi & Armando Vaz Sampaio, 2010. "As fontes da determinação da escolaridade dos trabalhadores da indústria de transformação brasileira," Working Papers 0098, Universidade Federal do Paraná, Department of Economics.
    8. Cathy Yang Liu & Xi Huang, 2016. "The Rise of Urban Entrepreneurs in China: Capital Endowments and Entry Dynamics," Growth and Change, Wiley Blackwell, vol. 47(1), pages 32-52, March.
    9. Sergei Soares & Luciana M. Santos Servo & Jorge Saba Arbache, 2001. "O que (não) Sabemos sobre a Relação entre Abertura Comercial e Mercado de Trabalho no Brasil," Anais do XXIX Encontro Nacional de Economia [Proceedings of the 29th Brazilian Economics Meeting] 048, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
    10. Zhao Chen & Ming Lu & Guanghua Wan, 2010. "Inter-Industry Wage Differentials: An Increasingly Important Contributor to Urban China Income Inequality," Global COE Hi-Stat Discussion Paper Series gd09-130, Institute of Economic Research, Hitotsubashi University.
    11. Arbache, Jorge Saba, 2004. "Do Structural Reforms always Succeed? Lessons from Brazil," WIDER Working Paper Series 058, World Institute for Development Economic Research (UNU-WIDER).

    More about this item

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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