Stocasthic frontiers and wage inefficiency in Venezuela

Pedro Harmath () and Josefa Ramoni ()
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Pedro Harmath: Universidad Centroccidental Lisandro Alvarado, Decanato de Ciencias y Tecnología, Departamento de Investigación de Operaciones y Estadística, Núcleo Obelisco, Avenida Las Industrias, Barquisimeto estado Lara, Venezuela.
Josefa Ramoni: Universidad de Los Andes, Facultad de Ciencias Económicas y Sociales, Departamento de Economía, Núcleo Liria, Edificio H, Piso 3, Mérida, estado Mérida, Venezuela.

Economía, 2012, vol. 37, issue 33, 107-142

Abstract: This paper analyzes wage inefficiency in Venezuela in 2006 based on the methodology of stochastic frontiers. Empirical results indicate that employers’ inefficiency is above 30%, while for employees inefficiency is not statistical significant. This can be explained by government role in the labor market and by the fact that employers may be paying efficiency wages to increase productivity.

Keywords: Stochastic frontiers; wages; labor market. (search for similar items in EconPapers)
JEL-codes: C21 C50 J01 J31 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ula:econom:v:37:y:2012:i:33:p:107-142

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