Abstract
Wage differentials by industry is an old issue and now a revivified one. In the past it was fairly popular to investigate interindustry wage differentials. These studies used data which reported only the average wage figures for various groups of workers, and derived implications from these figures. Recently, individual survey data on wages and other personal characteristics have become available. Economists attempt to standardize individual wage figures by controlling various quality variables of individual employees such as education, sex, and many others. These works derive a pure effect of industrial differences on wage differentials, after controlling for the contribution of quality variables. Past studies (i.e., the old type) typically used average figures and it was not easy to derive a pure effect, while the new type typically use individual observations, and it is thus easy to derive a pure effect. This is a clear distinction between old and new studies.
The authors are very grateful to B. Holmlund, T. Ishikawa, J. Leonard, Y. Nakata, S. Nickell, M. Rebick, R. Topel and T. Toyoda for their useful comments. Any remaining deficiencies, however, are due to the authours alone.
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© 1994 Toshiaki Tachibanaki
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Tachibanaki, T., Ohta, S. (1994). Wage Differentials by Industry and the Size of Firm, and Labour Market in Japan. In: Tachibanaki, T. (eds) Labour Market and Economic Performance. Studies on the Modern Japanese Economy. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-23612-1_3
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DOI: https://doi.org/10.1007/978-1-349-23612-1_3
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