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Interindustry Wage Differences and Industry Characteristics

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Dickens, William, Katz, Lawrence·1986·National Bureau of Economic Research

Abstract

This paper examines the extent of interindustry wage differences for nonunion workers and finds that even after controlling for a wide range of individual characteristics and geographic location a substantial amount of individual wage variation can be accounted for by industry differences.In the aggrergate industry effects explain at least 6.7% of inter-personal wage variation.At most they explain 30%.used to demonstrate this.High wage industries have lower quit rates, higher labor productivity, fewer women, more educated workers, longer work weeks, a higher ratio of nonwage to wage compensation, higher unionization rates, larger establishments and firms, higher concentration ratios and are more profitable.An analysis of a limited number of industry characteristics in 1939 yields a similar pattern.The implications of these results for alternative theories of wage determination are considered.

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Metadata

Authors
Dickens, W., & Katz, L.
Venue
National Bureau of Economic Research
Published
1986-09
OpenAlex
W1484090774
Cited by
294
References
0
Type
report
Language
en
Open access
green

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CoChat. (2026). Citation check: Interindustry Wage Differences and Industry Characteristics. https://app.cochat.ai/papers/10.3386/w2014
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Dickens, W., & Katz, L. (1986). Interindustry Wage Differences and Industry Characteristics. National Bureau of Economic Research. https://doi.org/10.3386/w2014

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