The Effect of Industry-Level Aggregate Demand on Earnings: Evidence from the US.

Economic theory suggests that workers' pay is mainly determined by their marginal product and that industry wage differentials may result either from the structure of the industry (demand type factors) or human capital characteristics of the employed labour force (supply type factors). This study us...

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Publicado en:Journal of Labor Research Vol. 41; no. 1/2; pp. 102 - 128
Autores principales: McCausland, W. D., Summerfield, F., Theodossiou, I.
Formato: Artículo
Publicado: Springer Nature Jun2020
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      dt: Jun2020
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        atl: The Effect of Industry-Level Aggregate Demand on Earnings: Evidence from the US.
      aug:
        au:
          McCausland, W. D.
          Summerfield, F.
          Theodossiou, I.
        affil:
          Department of Economics and Centre for European Labour Market Research, University of Aberdeen, Aberdeen, Scotland
          Department of Economics, St. Francis Xavier University, Antigonish, Canada
      su:
        Wage differentials
        Economics
        Human capital
        Labor market
        Aggregate demand
      sug:
        subj:
          Wage differentials
          Economics
          Human capital
          Labor market
          Aggregate demand
      keyword:
        E24
        Industrial earnings
        J31
        J63
        Macroeconomic demand
        E24
        Industrial earnings
        J31
        J63
        Macroeconomic demand
      ab: Economic theory suggests that workers' pay is mainly determined by their marginal product and that industry wage differentials may result either from the structure of the industry (demand type factors) or human capital characteristics of the employed labour force (supply type factors). This study uses a major data set from the US that allows the investigation of the effects of these demand and supply type factors on average earnings across industries. Importantly, this paper shows that aggregate demand relevant to the particular industry has a strong positive effect on the industry's average earnings in addition to the previously established results regarding the significance of the effects of worker and firm characteristics. Consequently, labour market policies crafted without due consideration of macroeconomic demand may be ineffective as a solution to the proliferation of low pay employment.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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