Template-Type: ReDIF-Paper 1.0

Author-Name: Achim Schmillen
Author-X-Name-First: Achim 
Author-X-Name-Last: Schmillen



Title: Are Wages Equal Across Sectors of Production? A Panel Data Analysis for Tradable and Non-Tradable Goods
	
Abstract: The assumption that national labor markets are homogenous across tradable and
non-tradable goods is common in multisector (open-economy) macro models and
crucial for the prominent Balassa-Samuelson hypothesis. This study tests it with
a novel method to distinguish the tradable and non-tradable sectors grounded in
economic theory, modern empirical methods and a large and detailed macro data set.
It nds that both the internal relationship between productivity and wages in the
tradable and non-tradable sectors postulated by the Balassa-Samuelson hypothesis
and its external transmission mechanism are rejected.
Length:  18 pages
Creation-Date:  2011-06
File-URL: http://www.bgpe.de/texte/DP/102_Schmillen.pdf
File-Format: Application/pdf
File-Function: First version, 2011
Number: 102
Classification-JEL: F31, F41
Keywords: Balassa-Samuelson, Wage equalization, Tradability
Handle: RePEc:bav:wpaper:102_Schmillen