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Technology, Labour Characteristics and Wage‐productivity Gaps *
Author(s) -
Ilmakunnas Pekka,
Maliranta Mika
Publication year - 2005
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/j.1468-0084.2005.00134.x
Subject(s) - productivity , wage , economics , labour economics , production (economics) , efficiency wage , low wage , wage share , field (mathematics) , demographic economics , economic growth , mathematics , microeconomics , pure mathematics
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.