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Interindustry Wage Differentials in Manufacturing: Rents and Industrial Structure

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  • Alex Grey

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.

Suggested Citation

  • Alex Grey, 1993. "Interindustry Wage Differentials in Manufacturing: Rents and Industrial Structure," Canadian Journal of Economics, Canadian Economics Association, vol. 26(3), pages 525-535, August.
    • Handle: RePEc:cje:issued:v:26:y:1993:i:3:p:525-35
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    Cited by:

    1. Vesna Stavrevska, 2011. "The efficiency wages perspective to wage rigidity in the open economy: a survey," International Journal of Manpower, Emerald Group Publishing Limited, vol. 32(3), pages 273-299, June.
    2. Egger, Hartmut & Etzel, Daniel, 2012. "The impact of trade on employment, welfare, and income distribution in unionized general oligopolistic equilibrium," European Economic Review, Elsevier, vol. 56(6), pages 1119-1135.
    3. Philip Du Caju & François Rycx & Ilan Tojerow, 2012. "Wage structure effects of international trade in a small open economy: the case of Belgium," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 148(2), pages 297-331, June.
    4. Philip Du Caju & François Rycx & Ilan Tojerow, 2011. "Wage Structure Effects of International Trade: Evidence from a Small Open Economy," Working Papers CEB 11-011, ULB -- Universite Libre de Bruxelles.
    5. Nannan Lundin & Lihong Yun, 2009. "International Trade and Inter‐Industry Wage Structure in Swedish Manufacturing: Evidence from Matched Employer–Employee Data," Review of International Economics, Wiley Blackwell, vol. 17(1), pages 87-102, February.
    6. Noria, Gabriela López, 2015. "The effect of trade and FDI on inter-industry wage differentials: The case of Mexico," The North American Journal of Economics and Finance, Elsevier, vol. 34(C), pages 381-397.

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