Wage premium in the industrial sector of the spanish economy : empirical evidence.
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Wage premium in the industrial sector of the spanish economy : empirical evidence.

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Wage premium in the industrial sector of the spanish economy : empirical evidence.

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Ortí Lahoz, Angel; Urbano Salvador, Amparo; Sánchez Pérez, Rosario
This document is a artículoDate1995

Este documento está disponible también en : http://hdl.handle.net/10550/45788
t. This paper presents evidence that firm-level productivity increases when the relative wage rises, or the level of unemployment rises. Both facts are consistent with the efficiency wage model. Moreover, there is support for the idea that an increase in the sector"s wage with respect to the previous year also increases productivity. We obtain the empirical evidence through a double-hurdle model. We use this estimation technique because it can be established that the differences in productivity between sectors could be explained by differences in effort. It means that some of the industrial sectors of the Spanish economy may pay wage premia while others do not. We also test this implication through panel data.

    Ortí Lahoz, Angel Urbano Salvador, Amparo Sánchez Pérez, Rosario 1995 Wage premium in the industrial sector of the spanish economy : empirical evidence. LABOUR, review of labour economics 9 2 253 274

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