TY  - JOUR
AU  - Rodrik,Dani
TI  - Democracies Pay Higher Wages
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 6364
PY  - 1998
Y2  - January 1998
UR  - http://www.nber.org/papers/w6364
L1  - http://www.nber.org/papers/w6364.pdf
N1  - Author contact info:
Dani Rodrik
John F. Kennedy School of Government
Harvard University
79 JFK Street
Cambridge, MA 02138
Tel: 617/495-9454
Fax: 617/496-5747
E-Mail: dani_rodrik@harvard.edu
AB  - Controlling for labor productivity, income levels, and other possible determinants, there is a robust and statistically significant association between the extent of democratic rights and wages received by workers. The association exists both across countries and over time within countries. The coefficient estimates suggest that non-negligible wage improvements result from the enhancement of democratic institutions: average wages in a country like Mexico would be expected to increase by 10-30 percent were Mexico to attain a level of democracy comparable to that prevailing in the U.S.
ER  -