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Unobserved Ability, Efficiency Wages, and Interindustry Wage Differentials

Author : McKinley L. Blackburn
Publisher :
Page : 40 pages
File Size : 47,6 MB
Release : 1991
Category : 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.

Wage Differentials: An International Comparison

Author : Toshiaki Tachibanaki
Publisher : Springer
Page : 385 pages
File Size : 27,38 MB
Release : 2016-07-27
Category : Business & Economics
ISBN : 1349262811

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Wages are a vital economic variable in their influence on employment and unemployment and as the main source of personal income, affecting both living standards and labour incentives. Wage determination is studied here in an international perspective, using a common theoretical framework and statistical method through the individual country chapters to reveal similarities and differences between Japan, South Korea, the United States, Canada, Australia, the United Kingdom, Germany and France.