Profitability, Concentration and the Interindustry Variation in Wages

Pugel, Thomas A.

doi:10.2307/1924751

Cited by 87 publications

(43 citation statements)

References 6 publications

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“…The relationship is far more ambiguous when detailed labor quality controls are included. Pugel (1980) and Hodson and England (1985) find strong positive effects of industry profitability measures on average industry wages even with controls for average worker characteristics, extent of unionization, and other industry variables, including the rate of employment growth. find that profits as a percentage of sales are strongly positively related to industry wage premiums for nonunion workers.…”

Section: " Katzmentioning

confidence: 98%

Efficiency Wage Theories: A Partial Evaluation

Katz¹

1986

NBER Macroeconomics Annual

218

106

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Section: " Katzmentioning

confidence: 98%

Efficiency Wage Theories: A Partial Evaluation

Katz¹

1986

NBER Macroeconomics Annual

218

106

View full text Add to dashboard Cite

“…Pugel (1980) and others have argued that economic profitability is a better measure of product market power across industries than concentration. The major problem that arises is getting an empirical measure of of economic profitability…”

mentioning

confidence: 99%

“…given the lack of a tight relationship between available measures of accounting profits and the theoretical construct of economic profitability.14 Pugel (1980) and Hodson and England (1986) find strong positive effects of industry profitability measures on average industry wages even with controls for average worker characteristics, union density, and other industry variables including the rate of employment growth. Both these studies find that wages are much more strongly related to direct measures of profits than to concentration.…”

mentioning

confidence: 99%

Interindustry Wage Differences and Industry Characteristics

Dickens¹,

Katz²

1986

129

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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%.While the importance of industry differences is clear, the reasons for the differences are more difficult to establish. Independent of the problems of interpreting the correlates of industry differences, even the sign of the relation of many variables with wages is difficult to establish when other variables are included as controls. This conclusion is suggested by a literature review and confirmed by an analysis of a large number of alternative specifications of an industry wage equation What does emerge from the analysis is a pattern of correlations. There appears to be one major dimension (and perhaps other less important dimensions) along which industries differ. A principal components analysis of an industry characteristics data set is 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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“…The principal factors giving rise to such differentials are differences in productivity and profitability among industries (Pugel, 1980), the degree of industry concentration (Dalton and Ford, 1977), compensating differentials and bargaining power of workers in industries with economic rents.…”

Section: Industrymentioning

confidence: 99%

Employment and remuneration of Irish chartered accountants: evidence of

Brennan¹,

Nolan²

1998

European Accounting Review

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Literature on gender-based salary differentials has proliferated in recent years but there have been few studies on salary differentials in the accounting profession. This paper examines factors influencing remuneration of Irish chartered accountants. Responses to the Leinster Society of Chartered Accountants (LSCA) annual salary survey in 1995 and 1996 were analysed. Employee-related and employer-related factors influencing remuneration were examined including gender, work experience, level of responsibility, employment contract and size and industry. Gender was a significant explanatory variable in explaining differences in salaries paid to employees working in non-audit businesses. Gender, however, was not found to be significant in explaining differences in salaries paid in audit practices. As partners in auditing firms are not included in this research (because partners do not earn a salary) this finding must be interpreted cautiously.

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Profitability, Concentration and the Interindustry Variation in Wages

Cited by 87 publications

References 6 publications

Efficiency Wage Theories: A Partial Evaluation

Efficiency Wage Theories: A Partial Evaluation

Interindustry Wage Differences and Industry Characteristics

Employment and remuneration of Irish chartered accountants: evidence of

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