Sources of Intra-industry Wage Dispersion: How Much Do Employers Matter?
Observed human capital explains less than half of wage variation. In Bureau of Labor Statistics' Industry Wage Surveys, establishment-based wage differentials (controlling for occupation) account for 20-70 percent of intraindustry wage variation. This corresponds to a standard deviation in wages in 14 percent of the mean, almost as large as interindustry wage variation. Investigation suggests that establishment wage differentials are not random variations or returns to usual measures of human capital. Copyright 1991, the President and Fellows of Harvard College and the Massachusetts Institute of Technology.
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Volume (Year): 106 (1991)
Issue (Month): 3 (August)
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