BIROn - Birkbeck Institutional Research Online

    Wages ahead of demand

    Orszag, J.M. and Zoega, Gylfi (1996) Wages ahead of demand. Economics Letters 53 (3), pp. 341-347. ISSN 0165-1765.

    Full text not available from this repository.

    Abstract

    The paper is an attempt to account for the empirical results of Krueger and Summers (Econometrica, 1988, 56, 259–293), which suggest significant inter-industry wage differentials. We derive a dynamic efficiency wage model where firms use their wage policy to reduce turnover costs. Industry wages are shown to be a positive function of both the level of productivity and its expected rate of growth. We use estimated Solow residuals as measures of industry productivity growth and relate them to inter-industry wage differentials. A positive relationship is found at the one-digit level but not for two-digit manufacturing industries.

    Metadata

    Item Type: Article
    School: Birkbeck Faculties and Schools > Faculty of Business and Law > Birkbeck Business School
    Depositing User: Sarah Hall
    Date Deposited: 01 Dec 2020 17:14
    Last Modified: 02 Aug 2023 18:06
    URI: https://eprints.bbk.ac.uk/id/eprint/41912

    Statistics

    Activity Overview
    6 month trend
    0Downloads
    6 month trend
    109Hits

    Additional statistics are available via IRStats2.

    Archive Staff Only (login required)

    Edit/View Item Edit/View Item