Persistent wage differential and its implications on the Balassa-Samuelson hypothesis

Mark J. Lee ()

Applied Economics Letters, 2005, vol. 12, issue 10, pages 643-648

Abstract: The objective of the study is to empirically examine the wage equalization assumption in the Balassa-Samuelson (BS) hypothesis. The wage equalization between the traded and the non-traded sectors is tested primarily based on resampling methods, permutation tests. The results show that the assumption does not hold uniformly. This study argues that a more general condition, which allows for wage differential between the sectors, can be used in the BS hypothesis as long as the wage differential is persistent. The persistent wage differential condition is empirically supported in this study.

Date: 2005
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://www.informaworld.com/openurl?genre=article& ... 40C6AD35DC6213A474B5 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:taf:apeclt:v:12:y:2005:i:10:p:643-648

Ordering information: This journal article can be ordered from
http://www.tandf.co.uk/journals/subscription.asp

Access Statistics for this article

Applied Economics Letters is edited by Mark Taylor

More articles in Applied Economics Letters from Taylor and Francis Journals
Series data maintained by Michael McNulty ().