Efforts and Wages

Efforts and Wages
Author: Edward E. Leamer
Publisher:
Total Pages: 52
Release: 1998
Genre: Wage differentials
ISBN:

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We provide evidence that US workers face a wage-effort offer curve with the high-wage high-effort jobs occurring in the capital intensive sectors. We find that real wage offers rose at every level of effort during the 1960's, a shift which is consistent with a decline in the rental cost of capital. During the 1970's, when relative prices of labor-intensive goods declined, the wage-effort offer curve twisted, offering lower pay for the low-paid jobs in the labor-intensive sectors but higher pay for the high-paid jobs in the capital-intensive sectors. In the 1980's, workers at every wage level began to work more hours for the same weekly wage. This we loosely attribute either to the increasing cost of non-wage benefits, especially health care, or to the introduction of new equipment. In studying the wage-effort offer curve rate of unionization, education, and rent sharing.

Inter-industry Wage Differentials

Inter-industry Wage Differentials
Author: Per-Anders Edin
Publisher:
Total Pages: 60
Release: 1989
Genre: Wage differentials
ISBN:

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Can Inter-industry Wage Differentials Justify Strategic Trade Policy?

Can Inter-industry Wage Differentials Justify Strategic Trade Policy?
Author: Lawrence F. Katz
Publisher:
Total Pages: 72
Release: 1988
Genre: Commercial policy
ISBN:

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This paper examines the relationship between labor market imperfections and trade policies. The available evidence suggests that pervasive industry wage differentials of up to 20 percent remain even after controlling for differences in observed measures of workers' skill and the effects of unions. Theoretical analysis indicates that given non-competitive wage differentials of this magnitude policies directed at encouraging employment in high-wage sectors could significantly enhance allocative efficiency. For the United States and other developed countries, such policies are more likely to involve export promotion than import substitution. Increased international trade flows (at least through 1984) have been associated with increased employment in high-wage U.S. manufacturing industries relative to low-wage U.S. manufacturing industries.

Unobserved Ability, Efficiency Wages, and Interindustry Wage Differentials

Unobserved Ability, Efficiency Wages, and Interindustry Wage Differentials
Author: McKinley L. Blackburn
Publisher:
Total Pages: 40
Release: 1991
Genre: Ability
ISBN:

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Interindustry wage differentials in wage regressions estimated for individuals have been interpreted as evidence consistent with efficiency wage models. A principal competing explanation is that these differentials are generated by differences across workers in unobserved ability. This paper tests the unobserved ability hypothesis .by incorporating test scores into standard wage regressions as error-ridden indicators of unobserved ability. The results indicate that differences in unobserved ability explain relatively little of interindustry or interoccupation wage differentials.