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Wages equal productivity, fact or fiction?

Author: Johannes van Biesebroeck; National Bureau of Economic Research.
Publisher: Cambridge, MA : National Bureau of Economic Research, ©2003.
Series: Working paper series (National Bureau of Economic Research), no. 10174.
Edition/Format:   eBook : Document : EnglishView all editions and formats
Summary:
"Using a matched employer-employee data set of manufacturing plants in three sub-Saharan countries, I compare the marginal productivity of different categories of workers with the wages they earn. Under certain conditions, the wage premiums for worker characteristics should equal the productivity benefits associated with them. I find that equality holds strongly for the most developed country in the sample  Read more...
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Details

Material Type: Document, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Johannes van Biesebroeck; National Bureau of Economic Research.
OCLC Number: 54664990
Notes: "December 2003."
Description: 1 online resource (52 pages).
Series Title: Working paper series (National Bureau of Economic Research), no. 10174.
Responsibility: Johannes Van Biesebroeck.

Abstract:

"Using a matched employer-employee data set of manufacturing plants in three sub-Saharan countries, I compare the marginal productivity of different categories of workers with the wages they earn. Under certain conditions, the wage premiums for worker characteristics should equal the productivity benefits associated with them. I find that equality holds strongly for the most developed country in the sample (Zimbabwe), but not at all for the least developed country (Tanzania). Differences between wage and productivity premiums are most pronounced for characteristics that are clearly related to human capital, such as schooling, training, experience, and tenure. Localized labor markets, imperfect substitutability of different worker-types, sampling errors, and nonlinear effects are rejected as explanation for the gap between wage and productivity effects"--NBER website.

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