Product Quality and Worker Quality

29 Pages Posted: 17 Jul 2000

See all articles by John M. Abowd

John M. Abowd

U.S. Census Bureau; Cornell University Department of Economics; Labor Dynamics Institute; School of Industrial and Labor Relations; NBER (on leave); CREST; IZA Institute of Labor Economics

Francis Kramarz

Independent

Antoine Moreau

National Institute of Statistics and Economic Studies (INSEE) - Center for Research in Economics and Statistics (CREST)

Date Written: April 1995

Abstract

We study the relation between product quality and worker quality using an economic model that, under certain conditions, provides a direct link between product price, product quality and work force quality. Our measures of product quality are the evolution in the detailed product price relative to its product group and the level of the product price relative to this group. Our worker quality measures are the firm's average person effect and personal characteristics effect from individual wage rates. We find a very weak, generally positive, relation between worker quality and product quality using detailed firm-level data from the French Producer Price Index surveys.

Suggested Citation

Abowd, John Maron and Kramarz, Francis and Moreau, Antoine, Product Quality and Worker Quality (April 1995). NBER Working Paper No. w5077, Available at SSRN: https://ssrn.com/abstract=225855

John Maron Abowd (Contact Author)

U.S. Census Bureau ( email )

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Cornell University Department of Economics ( email )

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Labor Dynamics Institute ( email )

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School of Industrial and Labor Relations ( email )

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NBER (on leave) ( email )

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CREST ( email )

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IZA Institute of Labor Economics

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Bonn, D-53072
Germany

Francis Kramarz

Independent

Antoine Moreau

National Institute of Statistics and Economic Studies (INSEE) - Center for Research in Economics and Statistics (CREST)

15 Boulevard Gabriel Peri
15 Boulevard Gabriel Peri
Malakoff Cedex, 1 92245
France

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