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Updated Notes on the Interindustry Wage Structure

  • Steven G. Allen

This paper documents and analyzes changes in the wage structure across manufacturing industries over the last one hundred years. Inter-industry differentials in wages are highly stable for production workers, but autocorrelation patterns for nonproduction workers are considerably weaker. Industry wage patterns are very similar for production and nonproduction workers today, but this has been true only since 1958. Dispersion of wages across industries has shown varying trends over the last one hundred years, but has never in this century been higher than it is today. The variables that are most strongly correlated with wage growth are productivity growth, rising union density, rising capital intensity, and profit growth.

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File URL: http://www.nber.org/papers/w4664.pdf
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 4664.

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Date of creation: Feb 1994
Date of revision:
Publication status: published as Industrial and Labor Relations Review, vol 48, no 2, pp 305-321, Jan 1995
Handle: RePEc:nbr:nberwo:4664
Note: LS
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  1. John M. Abowd & Richard B. Freeman, 1991. "Immigration, Trade, and the Labor Market," NBER Books, National Bureau of Economic Research, Inc, number abow91-1, October.
  2. Colin Lawrence & Robert Z. Lawrence, 1985. "Manufacturing Wage Dispersion: An End Game Interpretation," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 16(1), pages 47-116.
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  16. Edward Montgomery & David J. Stockton, 1985. "Evidence on the causes of the rising dispersion of relative wages," Working Paper Series / Economic Activity Section 49, Board of Governors of the Federal Reserve System (U.S.).
  17. Solon, Gary, 1992. "Intergenerational Income Mobility in the United States," American Economic Review, American Economic Association, vol. 82(3), pages 393-408, June.
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