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Persistence of Interindustry Wage Differentials: A Reexamination Using Matched Worker-Firm Panel Data

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  • Goux, Dominique
  • Maurin, Eric

Abstract

The authors estimate interindustry wage differentials using new French longitudinal data that allow a tracking of workers and their firms over time. They find that, when measured on a cross-sectional basis, they primarily reflect the interindustry variations in unmeasured labor quality. However, interindustry wage differentials are only a minor component of interfirm wage differentials. The average differential in wages paid to the same workers by different firms is about 20-30 percent. In a given industry, wage policies are more favorable to workers in large, capital-intensive firms. Copyright 1999 by University of Chicago Press.

Suggested Citation

  • Goux, Dominique & Maurin, Eric, 1999. "Persistence of Interindustry Wage Differentials: A Reexamination Using Matched Worker-Firm Panel Data," Journal of Labor Economics, University of Chicago Press, vol. 17(3), pages 492-533, July.
  • Handle: RePEc:ucp:jlabec:v:17:y:1999:i:3:p:492-533
    DOI: 10.1086/209929
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    References listed on IDEAS

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    1. 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.
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