An Empirical Analysis of Wage Dispersion and Efficiency Wages

Mahmood Arai ()

Scandinavian Journal of Economics, 1994, vol. 96, issue 1, pages 31-50

Abstract: The main purpose of this study is to examine interindustry wage differentials in Sweden. After controlling for individual and job characteristics, the results indicate that these differentials are substantial. The ranking of the differentials was stable over time, while the dispersion of wage premiums fell by 50 percent during the period 1968-81--a period of strong efforts to reduce wage dispersion in Sweden. The relation between industry wage premiums and a number of industry characteristics is also examined, along with new evidence that is in line with the shirking model hypothesis on the relation between wages and worker control. Copyright 1994 by The editors of the Scandinavian Journal of Economics.

Date: 1994
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Scandinavian Journal of Economics is edited by Jonas Agell, Nils Gottfries and Espen R. Moen

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