Interindustry Wage Differentials in Manufacturing: Rents and Industrial Structure

Alex Grey

Canadian Journal of Economics, 1993, vol. 26, issue 3, 525-35

Abstract: This paper examines industry structure and trade performance as determinants of industry wage differentials in Canadian manufacturing. It is similar to work done by L. Katz and L. Summers for the United States. Determinants (regressors) include occupational structure, share of youth, share of females, valued-added, capital intensity, and measures of trade performance. Value-added was the most important factor. Import competition is negatively correlated with wage differentials, while export orientation is positively but weakly correlated with wage differentials.

Date: 1993
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