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Market Structure and Worker Quality

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  • Belman, Dale
  • Heywood, John S

Abstract

It is frequently asserted, although never directly tested, that firms in more monopolistic industries hire better-qualified workers. This paper presents two new results. First, worker quality (education in particular) is a strong determinant of whether a worker is employed in a concentrated industry when using a traditional data source. Second, upon expanding the data to include measures of research and development, workers of better quality are actually no more likely to locate in concentrated industries. These results fit with theories claiming that industries subject to technological opportunities may be more concentrated and that those opportunities demand higher-quality workers. Copyright 1990 by Blackwell Publishing Ltd.

Suggested Citation

  • Belman, Dale & Heywood, John S, 1990. "Market Structure and Worker Quality," Journal of Industrial Economics, Wiley Blackwell, vol. 39(2), pages 155-168, December.
    • Handle: RePEc:bla:jindec:v:39:y:1990:i:2:p:155-68
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    Cited by:

    1. Debasis Bandyopadhyay, 2001. "The industry premium: What we know and what the New Zealand data say," New Zealand Economic Papers, Taylor & Francis Journals, vol. 35(1), pages 53-75.
    2. Fatma Abdel-Raouf, 2010. "Trade-Adjusted Concentration Ratios in the US Manufacturing Sector," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 17(3), pages 385-403.
    3. Gee San & Tung-Chun Huang & Li-Hsuan Huang, 2006. "The Establishment and Application of a Labor Quality Index: The Case of Taiwan’s Manufacturing Industry," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 79(1), pages 61-96, October.
    4. Kraft, Kornelius, 2017. "Productivity and distribution effects of codetermination in an efficient bargaining," ZEW Discussion Papers 17-039, ZEW - Leibniz Centre for European Economic Research.
    5. Kraft, Kornelius, 2018. "Productivity and distribution effects of codetermination in an efficient bargaining model," International Journal of Industrial Organization, Elsevier, vol. 59(C), pages 458-485.
    6. Shah, Anwar & DEC, 1994. "The economics of research and development : how research and development capital affects production and markets and is affected by tax incentives," Policy Research Working Paper Series 1325, The World Bank.

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