Location of Repository

Inter-industry Wage Differences and Individual Heterogeneity

By Alan Carruth, William Collier and Andy Dickerson

Abstract

Two well-established findings are apparent in the analyses of individual wage determination: cross-section wage equations can account for less than half of the variance in earnings and there are large and persistent inter-industry wage differentials. We explore these two empirical regularities using longitudinal data from the BHPS. We show that around 90 % of the variation in earnings can be explained by observed and unobserved individual characteristics. However, small- but statistically significant- industry wage premia do remain, and there is also a role for a rich set of job and workplace controls

Topics: Wage Structure, Wage Differentials, Panel Data, Unobserved Ability
Year: 2011
OAI identifier: oai:CiteSeerX.psu:10.1.1.199.5486
Provided by: CiteSeerX
Download PDF:
Sorry, we are unable to provide the full text but you may find it at the following location(s):
  • http://citeseerx.ist.psu.edu/v... (external link)
  • http://www2.warwick.ac.uk/fac/... (external link)
  • Suggested articles


    To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.