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Complex Production Processes and Wage Inequality

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dc.creator Pekkarinen, Tuomas
dc.date 2004
dc.date.accessioned 2013-10-16T07:09:48Z
dc.date.available 2013-10-16T07:09:48Z
dc.date.issued 2013-10-16
dc.identifier http://hdl.handle.net/10419/20295
dc.identifier ppn:381657663
dc.identifier.uri http://koha.mediu.edu.my:8181/xmlui/handle/10419/20295
dc.description This paper studies how changes in the complexity of the firms' production technologies affect wage differences between and within tasks. In a production process where tasks are complementary, the employer may have an incentive to pay higher wages when using more complex technologies because the output of such processes is more effort-sensitive. We use linked employer-employee data from the Finnish metal industry. These data provide quantified information on the complexity of the tasks of individual workers. The average complexity of the tasks in the firm is used as a proxy for the complexity of the production process. We estimate the effect of the complexity of the production process on hourly wages at different levels of complexity of the worker's own tasks and at different parts of the conditional wage distribution within tasks. We find that the complexity of the firm's production process increases wages in all the tasks but that there are no significant differences in this effect across tasks. Finally, the effect of the complexity of the production process tends to be stronger at the high end of the conditional wage distribution within tasks.
dc.language eng
dc.publisher
dc.relation IZA Discussion paper series 1060
dc.rights http://www.econstor.eu/dspace/Nutzungsbedingungen
dc.subject O33
dc.subject J31
dc.subject ddc:330
dc.subject technological complexity
dc.subject wage inequality
dc.subject Fertigungstechnik
dc.subject Komplexitätsmanagement
dc.subject Anforderungsprofil
dc.subject Lohnstruktur
dc.subject Metallindustrie
dc.subject Schätzung
dc.subject Finnland
dc.title Complex Production Processes and Wage Inequality
dc.type doc-type:workingPaper


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