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Uses a data set from Guadalajara, Mexico, to investigate thedeterminants of the wage structure of manual employees in the urbansector of a developing economy. Focuses particular attention on whetherthere is a significant difference in remuneration between permanent andcasual employees after allowing for the different human capital andother characteristics of the two groups. Finds that, once a correctionhas also been made for selectivity bias, a substantial wage gap infavour of permanent employees exists. Also confirms and estimates wagedifferentials associated with educational background and unionmembership. However, finds no support for the idea that a largemultinational will pay wages above the expected level for a given typeof worker.
Journal of Economic Studies – Emerald Publishing
Published: Jun 1, 1993
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