Premium
Inter‐Industry Wage Differentials in Great Britain
Author(s) -
Benito Andrew
Publication year - 2000
Publication title -
oxford bulletin of economics and statistics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.131
H-Index - 73
eISSN - 1468-0084
pISSN - 0305-9049
DOI - 10.1111/1468-0084.0620s1727
Subject(s) - earnings , profitability index , wage , economics , panel data , labour economics , demographic economics , econometrics , accounting , finance
The paper considers the determination of earnings of private sector employees in Great Britain, focusing upon the importance of industry affiliation in this process. Whilst cross‐sectional estimates, using waves 1 to 4 of the British Household Panel Survey, suggest industry status is of considerable importance, much of this variation is removed by estimating earnings equations by fixed effects methods. Estimated differentials are not inversely related to the steepness of age‐earnings pro(r)les in an industry, do not appear to vary over time and are positively related to industry profitability.