TY  - JOUR
AU  - Krueger,Alan B.
AU  - Summers,Lawrence H.
TI  - Efficiency Wages and the Wage Structure
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 1952
PY  - 1989
Y2  - May 1989
UR  - http://www.nber.org/papers/w1952
L1  - http://www.nber.org/papers/w1952.pdf
N1  - Author contact info:
Alan B. Krueger
Industrial Relations Section
Firestone Library
Princeton University
Princeton, NJ 08544
Tel: 609/258-4046
Fax: 609/258-2907
E-Mail: akrueger@princeton.edu

Lawrence H. Summers
Harvard Kennedy School of Government
79 JFK Street
Cambridge, MA 02138
Tel: 617/495-9322
Fax: 617/495-0436
E-Mail: lhs@harvard.edu
AB  - This paper examines differences in pay for equally skilled workers in
different industries. The major finding is that there is substantial
dispersion in wages across industries, even after allowing for measured and
unmeasured labor quality, working conditions, fringe benefits, transitory
demand shocks, threat of unionization, union bargaining power, firm size and
other factors. Some direct evidence in favor of efficiency wage theories is
presented. The evidence suggests that industry wage differentials are
successful in eliciting better performance through reduced turnover and
increased effort.
ER  -