Abstract
The apparent stability of the interindustry wage structure across occupations, age groups, durations of job tenure and countries has received renewed interest among economists. Industries which pay comparatively high wages to blue-collar workers also tend to pay comparatively high wages to their white-collar workers. The same tends to be true for a variety of occupational groups (see, for example, Dickens and Katz, 1986a). This regularity is also apparent for young and old workers and for workers with long and short job tenure (Krueger and Summers, 1986, 1988). Such evidence suggests that wage differences among industries cannot be fully explained by differences in human capital or in seniority.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Reference
Blanchflower, D. G., Oswald, A. J. and Garrett, M. D. (1987) ‘Insider Power in Wage Determination’, part II, mimeo, Centre for Labour Economics, London School of Economics.
Dickens, W. and Katz, L. (1986a) ‘Industry and Occupational Wage Patterns and Theories of Wage Determination’, mimeo.
Dickens, W. and Katz, L. (1986b) ‘Inter-industry Wage Differences and Industry Characteristics’, in Lang, K. and Leonard, J. (eds) Unemployment and the Structure of Labour Markets (Oxford: Blackwell).
Krueger, A. B. and Summers, L. H. (1986) ‘Reflections on the Inter-industry Wage Structure’, in Lang, K. and Leonard, J. (eds) Unemployment and the Structure of Labour Markets (Oxford: Blackwell).
Krueger, A. B. and Summers, L. H. (1988) ‘Efficiency Wages and the Interindustry Wage Structure’, Econometrica, vol. 56, pp. 259–94.
Kwoka, J. (1983) ‘Monopoly, Plant and Union Effects on Worker Wages’, Industrial and Labour Relations Review, vol. 36, pp. 251–7.
Lawrence, C. and Lawrence, R. (1985) ‘Relative Wages in US Manufacturing: an Endgame Interpretation’, Brookings Papers on Economic Activity, pp. 47–106.
Lindbeck, A. and Snower, D. J. (1984) ‘Involuntary Unemployment as an Insider-Outsider Dilemma’, Stockholm Institute of International Economic Studies, seminar paper no. 282, revised version in Beckerman, W. (ed.) Wage Rigidity and Unemployment (London: Duckworth, 1986) pp. 97–125.
Lindbeck, A. and Snower, D. J. (1986) ‘Wage Setting, Unemployment and Insider-Outsider Relations’, American Economic Review, May, vol. 76, pp. 235–9.
Lindbeck, A. and Snower, D. J. (1987a) ‘Union Activity, Unemployment Persistence, and Wage Employment Ratchets’, European Economic Review, vol. 31, pp. 157–67.
Lindbeck, A. and Snower, D. J. (1987b) ‘Efficiency Wages versus Insiders and Outsiders’, European Economic Review, vol. 31, pp. 407–16.
Lindbeck, A. and Snower, D. J. (1988a) ‘Cooperation, Harassment, and Involuntary Unemployment’, American Economic Review, March, vol, 78, pp. 167–88.
Lindbeck, A. and Snower, D.J. (1988b) ‘Job Security, Work Incentives, and Unemployment’, Scandinavian Journal of Economics (forthcoming).
Mishel, L. (1982) ‘Product Markets, Establishment Size and Wage Determination’, Industrial Research Association Series, pp. 447–54.
Pencavel, J. (1970) An Analysis of the Quit Rate in American Manufacturing Industry (Princeton, New Jersey: Industrial Relations Section).
Podgursky, M. (1986) ‘Unions, Establishment Size and Intro-Industry Threat Effects’, Industrial and Labour Relations Review, vol. 39,.
Pugel, T. (1980) ‘Profitability, Concentration and the Inter-Industry Variation in Wages’, Review of Economics and Statistics, vol. 62, pp. 248–53.
Solow, R. M. (1985) ‘Insiders and Outsiders in Wage Determination’, Scandinavian Journal of Economics, vol. 87 no. 2, pp. 711–28.
Editor information
Copyright information
© 1990 International Economic Association
About this chapter
Cite this chapter
Lindbeck, A., Snower, D. (1990). Interindustry Wage Structure and the Power of Incumbent Workers. In: Brunetta, R., Dell’Aringa, C. (eds) Labour Relations and Economic Performance. International Economic Association Series. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-11562-4_15
Download citation
DOI: https://doi.org/10.1007/978-1-349-11562-4_15
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-11564-8
Online ISBN: 978-1-349-11562-4
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)