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Product Quality and Worker Quality

Author

Listed:
  • Abowd, John M
  • Kramarz, Francis

Abstract

We study the relation between product quality and worker quality using an economic model that, under certain conditions, provides a direct link between product price, product quality and work-force quality. Our measures of product quality are the evolution in the detailed product price relative to its product group, and the level of the product price relative to this group. Our worker quality measures are the firm's average person effect and personal characteristics effect from individual wage rates. We find a very weak, generally positive, relation between worker quality and product quality using detailed firm-level data from the French Producer Price Index surveys.

Suggested Citation

  • Abowd, John M & Kramarz, Francis, 1995. "Product Quality and Worker Quality," CEPR Discussion Papers 1233, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:1233
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    References listed on IDEAS

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    1. Michael Kremer, 1993. "The O-Ring Theory of Economic Development," The Quarterly Journal of Economics, Oxford University Press, vol. 108(3), pages 551-575.
    2. 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.
    3. Mark Doms & Timothy Dunne & Kenneth R. Troske, 1997. "Workers, Wages, and Technology," The Quarterly Journal of Economics, Oxford University Press, vol. 112(1), pages 253-290.
    4. Stephen Nickell & D Nicolitsas, 1994. "Wages," CEP Discussion Papers dp0219, Centre for Economic Performance, LSE.
    5. Horst Entorf & Francis Kramarz, 1998. "The Impact Of New Technologies On Wages: Lessons From Matching Panels On Employees And On Their Firms," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 5(2-4), pages 165-198.
    6. John M. Abowd & Bruno Crepon & Francis Kramarz & Alain Trognon, 1995. "A La Recherche des Moments Perdus: Covariance Models for Unbalanced Panels with Endogenous Death," NBER Technical Working Papers 0180, National Bureau of Economic Research, Inc.
    7. Robert J. Gordon, 1990. "The Measurement of Durable Goods Prices," NBER Books, National Bureau of Economic Research, Inc, number gord90-1, August.
    8. Berry, Steven & Levinsohn, James & Pakes, Ariel, 1995. "Automobile Prices in Market Equilibrium," Econometrica, Econometric Society, vol. 63(4), pages 841-890, July.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. repec:clu:wpaper:0708-12 is not listed on IDEAS
    2. Jean-Marie Cardebat, 2002. "Commerce international et développement, quelles relations ? Une réponse empirique à partir de données de panel," Revue Tiers Monde, Programme National Persée, vol. 43(170), pages 423-446.
    3. Maurice Kugler & Eric Verhoogen, 2012. "Prices, Plant Size, and Product Quality," Review of Economic Studies, Oxford University Press, vol. 79(1), pages 307-339.
    4. Stern, David I., 2010. "Energy quality," Ecological Economics, Elsevier, vol. 69(7), pages 1471-1478, May.
    5. Jean Gabszewicz & Alessandro Turrini, 1999. "Workers' Skills and Product Selection," Revue Économique, Programme National Persée, vol. 50(3), pages 383-391.
    6. repec:eee:labchp:v:3:y:1999:i:pb:p:2629-2710 is not listed on IDEAS

    More about this item

    Keywords

    Product Quality; Wages; Worker Quality;

    JEL classification:

    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality

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