Earlier versions of this paper have been presented at the following conferences: CAED, Aarhus, 2001, HEWPEM, Patras, 2001, DILEED, Wellington, 2002 and EARIE, Madrid, 2002. The research has been supported by Academy of Finland (project 50950). When this research was carried out Mika Maliranta was working for Statistics Finland. We are thankful to a referee for useful comments.
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Technology, Labour Characteristics and Wage-productivity Gaps†
Article first published online: 27 SEP 2005
DOI: 10.1111/j.1468-0084.2005.00134.x
Additional Information
How to Cite
Ilmakunnas, P. and Maliranta, M. (2005), Technology, Labour Characteristics and Wage-productivity Gaps. Oxford Bulletin of Economics and Statistics, 67: 623–645. doi: 10.1111/j.1468-0084.2005.00134.x
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Publication History
- Issue published online: 27 SEP 2005
- Article first published online: 27 SEP 2005
- Final Manuscript Received: February 2005
- Abstract
- Article
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Keywords:
- D240;
- J240;
- J310;
- J700
Abstract
We use plant-level employer–employee data in production functions and wage equations to examine whether wages are based on productivity. We use a stepwise procedure to find out how the results are influenced by the kind of data that is available. The models include shares of employee groups based on age, level and field of education, and sex. The gap between the age-related wage and productivity effects increases with age. Education increases productivity, but wage under-compensates productivity especially for those with the highest level of non-technical education. For women the results depend greatly on the specification and method used.