Self-selection and the Distribution of Hourly Wages

James Heckman and Guilherme L Sedlacek

Journal of Labor Economics, 1990, vol. 8, issue 1, S329-63

Abstract: This article formulates and estimates alternative equilibrium models of industrial wage determination and self-selection. In explaining industrial wage differentials, the authors find that it is important to account for heterogenous sector-specific skills and self-selection decisions by agents concerning their sector of employment. The classical Roy model is rejected. So is an efficiency units model of the labor market. A revised Roy model that accounts for comparative advantage in the choice of industrial sectors and choice between market and nonmarket work is much more successful in explaining cross-section wage distributions and their evolution over time. Demand-Side Factors Copyright 1990 by University of Chicago Press.

Date: 1990
References: Add references at CitEc
Citations: View citations in EconPapers (67)

Downloads: (external link)
http://links.jstor.org/sici?sici=0734-306X%2819900 ... O%3B2-3&origin=repec full text (application/pdf)
Access to full text is restricted to subscribers. See http://www.journals.uchicago.edu/JOLE for details.

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: https://EconPapers.repec.org/RePEc:ucp:jlabec:v:8:y:1990:i:1:p:s329-63

Access Statistics for this article

More articles in Journal of Labor Economics from University of Chicago Press
Bibliographic data for series maintained by Journals Division ().