Reflections on the Inter-Industry Wage Structure

51 Pages Posted: 28 Jun 2004

See all articles by Alan B. Krueger

Alan B. Krueger

Princeton University - Industrial Relations Section; National Bureau of Economic Research (NBER); IZA Institute of Labor Economics

Lawrence H. Summers

Harvard University; National Bureau of Economic Research (NBER); Harvard University - Harvard Kennedy School (HKS)

Date Written: June 1986

Abstract

This paper reviews available evidence on the inter-industry wage structure. The inter-industry wage structure is remarkably similar in different eras, in different countries, and among different types of workers. Industries with high capital-to-labor ratios, monopoly power and high profits pay relatively high wages. We conclude that the competitive model cannot without substantial modification provide an adequate explanation of theinter-industry wage structure. The implications of this finding for micro and macro economic theory and policy are examined.

Suggested Citation

Krueger, Alan B. and Summers, Lawrence H., Reflections on the Inter-Industry Wage Structure (June 1986). NBER Working Paper No. w1968. Available at SSRN: https://ssrn.com/abstract=344782

Alan B. Krueger (Contact Author)

Princeton University - Industrial Relations Section ( email )

Princeton, NJ 08544-2098
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609-258-4046 (Phone)
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National Bureau of Economic Research (NBER)

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IZA Institute of Labor Economics

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Lawrence H. Summers

Harvard University ( email )

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Cambridge, MA 02138
United States
617-495-1502 (Phone)
617-495-8550 (Fax)

National Bureau of Economic Research (NBER)

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United States

Harvard University - Harvard Kennedy School (HKS) ( email )

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Cambridge, MA 02138
United States

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