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dc.contributor.authorPEKKARINEN, Tuomas
dc.date.accessioned2011-04-19T12:49:10Z
dc.date.available2011-04-19T12:49:10Z
dc.date.issued2002
dc.identifier.citationLabour Economics, 2002, 9, 4, 531-546
dc.identifier.issn0927-5371
dc.identifier.urihttps://hdl.handle.net/1814/16587
dc.description.abstractThis paper is an empirical study on the effect of complexity of the production porcess on individual hourly wages. According to a model-due to Kremer [Quarterly Journal of Economics 108 (1993) 551] and Dalmazzo [Dalmazzo, A., 2001. Technological complexity, wage differentials, and unemployment, mimeo, Department of Political Economy, University of Siena]-that combines the O-ring production function with efficiency wages, the workers employed in a firm with a more complex production process should earn higher wages than identical workers that work on identical tasks in firms with less complex production processes. We argue that the Finnish metal industry data are suitable for the empirical analysis of this implication since they provide quantified information on the complexity of the tasks. We estimate the effect of the complexity of the co-workers' tasks on individual hourly wages while controlling for the complexity of individual's own tasks. The complexity of the co-workers' tasks has a positive effect on hourly wages in all the estimated equations although with varying significance. We interpret the results as supporting the hypothesis that differences in the complexity of the production processes can give rise to inter-firm wage differentials.
dc.language.isoen
dc.publisherElsevier Science Bv
dc.subjecttechnological complexity
dc.subjectwage inequality
dc.subjectO-ring production function
dc.titleComplexity, Wages, and the O-Ring Production Function: Evidence From Finnish Panel Data
dc.typeArticle
dc.identifier.doi10.1016/S0927-5371(02)00046-5
dc.neeo.contributorPEKKARINEN|Tuomas|aut|
dc.identifier.volume9
dc.identifier.startpage531
dc.identifier.endpage546
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dc.identifier.issue4


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