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Title: Interindustry Wage Differences: An Empirical Review

Citation Type: Working Paper

Publication Year: 2009

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Abstract: Under competitive labor markets, workers should be paid according to their productivity,regardless of other personal characteristics. This, however, is not the case and has beenwidely reported in the literature. This paper reviews empirical evidence and methods ofestimation for sectoral wage differentials. Moreover, it shows estimates of suchdifferentials for the United States using CPS data from 1968 to 2008. The presence ofindustry wage differentials is certain, although under certain econometric techniques, itsmagnitude is reduced in favor of unobserved worker and firm characteristics.

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Authors: Ricuarte, Miguel

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Publication Number: 525

Institution: Central Bank of Chile

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Data Collections: IPUMS CPS

Topics: Labor Force and Occupational Structure

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