Inter-industry wage premiums and industry-specific productivity in Taiwan
By using Taiwan's Manpower Utilization Survey data for the 1978-2000 period, different inter-industry wage premiums in Taiwan are observed and the impact of workers' industry-specific productivity on the wage explored. The empirical results show that industry-specific skills result in industry stayers having higher wages than industry switchers through their reservation wages. It is also found that the pre-displacement industry affiliations that are associated with the post-displacement wages are explained by the workers' unobserved abilities. Furthermore, by comparing the different residual means between industry switchers and stayers based on each industry's wage equation, it is found that the switchers are low-wage workers who tend to be located in the high-wage industries. The high-wage industry leavers are also found to have higher post-displacement wage residuals than the low-wage industry leavers. These results suggest that the differences in industry wage premiums may be explained by the industry-specific productivity.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 37 (2005)
Issue (Month): 13 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/RAEC20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/RAEC20|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Robert Gibbons & Lawrence Katz, 1992.
"Does Unmeasured Ability Explain Inter-Industry Wage Differentials?,"
Review of Economic Studies,
Oxford University Press, vol. 59(3), pages 515-535.
- Robert Gibbons & Lawrence F. Katz, 1989. "Does Unmeasured Ability Explain Inter-Industry Wage Differentials?," NBER Working Papers 3182, National Bureau of Economic Research, Inc.
- Blanchflower, D. & Oswald, A. & Garrett, M., 1988.
"Insider Power In Wage Determination,"
319, London School of Economics - Centre for Labour Economics.
- Topel, Robert, 1990. "Specific capital and unemployment: Measuring the costs and consequences of job loss," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 33(1), pages 181-214, January.
- Erkan Erdil & I. Hakan Yetkiner, 2001. "A comparative analysis of inter-industry wage differentials: industrialized versus developing countries," Applied Economics, Taylor & Francis Journals, vol. 33(13), pages 1639-1648.
- Michael P. Keane, 1991.
"Individual heterogeneity and interindustry wage differentials,"
Discussion Paper / Institute for Empirical Macroeconomics
54, Federal Reserve Bank of Minneapolis.
- Michael P. Keane, 1993. "Individual Heterogeneity and Interindustry Wage Differentials," Journal of Human Resources, University of Wisconsin Press, vol. 28(1), pages 134-161.
- Lawrence F. Katz, 1986.
"Efficiency Wage Theories: A Partial Evaluation,"
in: NBER Macroeconomics Annual 1986, Volume 1, pages 235-290
National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:37:y:2005:i:13:p:1523-1533. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty)
If references are entirely missing, you can add them using this form.