Mason, Patrick L. (1994): An empirical derivation of the industry wage equation. Published in: Journal of Quantitative Economics , Vol. 10, No. 1 (1994): pp. 155-170.
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This paper utilizes the Box-Cox transformation of variables technique to empirically derive an industry wage equation. Section I presents the determinants of potential wage differentials between and within industries. Section II estimates a Box-Cox industry wage equation. Likelihood ratio tests on alternative specifications of this equation affirm that competitive structure is a significant determinant of the industry wage rate and that human capital specifications of the industry wage equation (for the manufacturing sector) are not statistically valid. Section III summarizes the results.
|Item Type:||MPRA Paper|
|Original Title:||An empirical derivation of the industry wage equation|
|Keywords:||Box-Cox; functional form; wage equation; labor market inequality; efficiency wage|
|Subjects:||J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J31 - Wage Level and Structure; Wage Differentials
C - Mathematical and Quantitative Methods > C5 - Econometric Modeling > C52 - Model Evaluation, Validation, and Selection
L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L20 - General
|Depositing User:||Patrick L. Mason|
|Date Deposited:||01. Nov 2008 01:51|
|Last Modified:||16. Feb 2013 05:02|
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