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Wages and Industry Characteristics: The Impact of Value Added per Employee, Establishment Size and Industry Growth

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  • Zubin R. Mulla

Abstract

We expect that, identical labor should command identical wages. However, by seeing inter-industry profile of wages, we find huge discrepancies, which are beyond obvious differences in skills and qualifications. By looking at data on wages and industry characteristics across 147 industries, the study investigated some of the determinants of differential wages across industries. Regression analysis and ANOVA revealed that value added per employee, and establishment size are significant determinants of average wages. Industry growth was found to be negatively related to average wages for industries where value added per employee was very high.

Suggested Citation

  • Zubin R. Mulla, 2008. "Wages and Industry Characteristics: The Impact of Value Added per Employee, Establishment Size and Industry Growth," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 33(2), pages 275-289, May.
    • Handle: RePEc:sae:manlab:v:33:y:2008:i:2:p:275-289
    DOI: 10.1177/0258042X0803300208
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    References listed on IDEAS

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    4. A. D. Roy, 1951. "Some Thoughts On The Distribution Of Earnings," Oxford Economic Papers, Oxford University Press, vol. 3(2), pages 135-146.
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