An empirical derivation of the industry wage equation

Patrick Mason

MPRA Paper from University Library of Munich, Germany

Abstract: This paper utilizes the Box-Cox transformation of variables technique to empirically derive an industry wage equation. Section I presents the determinants of potential wage differentials between and within industries. Section II estimates a Box-Cox industry wage equation. Likelihood ratio tests on alternative specifications of this equation affirm that competitive structure is a significant determinant of the industry wage rate and that human capital specifications of the industry wage equation (for the manufacturing sector) are not statistically valid. Section III summarizes the results.

Keywords: Box-Cox; functional form; wage equation; labor market inequality; efficiency wage (search for similar items in EconPapers)
JEL-codes: C52 J31 L20 (search for similar items in EconPapers)
Date: 1994
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Citations: View citations in EconPapers (4)

Published in Journal of Quantitative Economics 1.10(1994): pp. 155-170

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