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Do Wages reflect Productivity?

Abstract:

We investigate wage and productivity profiles in the Ghanaian Manufacturing sector using matched firm and worker data. Following Medoff and Abraham (1980,1981), we use performance appraisal as our measure of individual productivity. Controlling for a wide range of human capital variables, including cognitive skills, we find that on average wage profiles do reflect productivity profiles. However, wages are steeper in large and unionized firms. This suggests that human capital theory holds for ...

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Pieter Serneels More by this author
Volume:
GPRG-WPS-029
Series:
Working Paper Series
Publication date:
2005-10-05
URN:
uuid:c5a4359f-b59f-4516-86f5-bfa790bfdc82
Local pid:
oai:economics.ouls.ox.ac.uk:14054
Language:
English

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