Efficiency Wages and the Wage Structure / Alan B. Krueger, Lawrence H. Summers.

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Krueger, Alan B

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Material type: Text

TextSeries: Working Paper Series (National Bureau of Economic Research) ; no. w1952.Publication details: Cambridge, Mass. National Bureau of Economic Research 1986.Description: 1 online resource: illustrations (black and white)Subject(s):

J - Labor and Demographic Economics

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Abstract: This paper examines differences in pay for equally skilled workers inAbstract: different industries. The major finding is that there is substantialAbstract: dispersion in wages across industries, even after allowing for measured andAbstract: unmeasured labor quality, working conditions, fringe benefits, transitoryAbstract: demand shocks, threat of unionization, union bargaining power, firm size andAbstract: other factors. Some direct evidence in favor of efficiency wage theories isAbstract: presented. The evidence suggests that industry wage differentials areAbstract: successful in eliciting better performance through reduced turnover andAbstract: increased effort.

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June 1986.

This paper examines differences in pay for equally skilled workers in

different industries. The major finding is that there is substantial

dispersion in wages across industries, even after allowing for measured and

unmeasured labor quality, working conditions, fringe benefits, transitory

demand shocks, threat of unionization, union bargaining power, firm size and

other factors. Some direct evidence in favor of efficiency wage theories is

presented. The evidence suggests that industry wage differentials are

successful in eliciting better performance through reduced turnover and

increased effort.

Hardcopy version available to institutional subscribers

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Mode of access: World Wide Web.

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