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Inter-Industry Wage Differentials in Switzerland

Giovanni Ferro-Luzzi

Swiss Journal of Economics and Statistics (SJES), 1994, vol. 130, issue III, 421-443

Abstract: This paper analyzes the Swiss inter-industry wage structure in the light of the current debate on the efficiency wage hypothesis. Results clearly indicate the presence of an industry component in the determinants of earnings in Switzerland. No definite conclusion emerges though as to the source of wage variation. The stability of the wage structure and the role of tenure point to the existence of "wage rents". However, these results may be severely biased if unobserved ability is used by firms to sort workers.

Date: 1994
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