 Technology and Firm Size-Wage Differentials in Colombia, Mexico, and Taiwan (China)Hong Tan and Geeta Batra The World Bank Economic Review, 1997, vol. 11, issue 1, 59-83 Abstract: In many economies, studies have found large wage differentials not accounted for by workforce characteristics, collective bargaining, or market power. Researchers attribute these differentials to either unobserved worker quality or pay incentives designed to elicit worker effort. This article finds empirical support for an alternative explanation: These wage differentials result from firms' technology-generating activities. Using firm-level data from Colombia, Mexico, and Taiwan (China), the article compares the effects of research and development, worker training, and exports by employers on the wages of skilled and unskilled workers. The results suggest that technology investments lead to large wage premiums for skilled workers but not for unskilled workers. These wage premiums are primarily the result of investments in research and development and in training, while exporting is relatively less important except in Colombia. Copyright 1997 by Oxford University Press. Date: 1997 There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:oup:wbecrv:v:11:y:1997:i:1:p:59-83 Ordering information: This journal article can be ordered from Access Statistics for this article The World Bank Economic Review is currently edited by Eric Edmonds and Nina Pavcnik More articles in The World Bank Economic Review from World Bank Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK. Contact information at EDIRC. |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.