Interfirm wage differentials in a local labor market: the case of the fast-food industry

Article Abstract:

We examine interfirm wage differentials among fast-food restaurants in Atlanta, Georgia to determine the degree to which these differentials correspond to the predictions of competitive theory. While no definitive test is possible, given our inability t control all sources of wage variation, the evidence nevertheless suggests that the wage structure is largely shaped by competitive forces, albeit in a relatively complex manner due to differences in a host of factors that the simple version of the theory holds constant. Evidence is also found, on the other hand, that the supply curve of labor the individual firm slopes upward for experienced workers and that a small noncompensating wage differential may exist that is related to variation in each restaurant's ability to pay. (Reprinted by permission of the publisher.)

Eating places, Fast Food Restaurants, Limited-Service Restaurants, Employment, Atlanta, Georgia

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State and local government wage differentials: an intrastate analysis

Article Abstract:

Previous estimates of state and local government wage differentials have been typically based on data aggregated across all states, and such aggregation may produce misleading differential estimates. We estimate intrastate earnings differentials for the state and local sectors in Wisconsin, four other midwestern states, and two states outside the midwest. There is substantial variation in the differentials: aggregated differentials can be misleading. Our work also confirms that state and local government labor markets have reduced earnings dispersion and investigates the possibility that higher public sector earnings may attract an "over-qualified" work force. (Reprinted by permission of the publisher.)

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Government wage differentials revisited

Article Abstract:

This paper updates studies done in the mid-1970s concerning the measurement of government wage differentials in the United States. Based on an analysis of two large micro data sets, we reached the following conclusions. First, as a group, government employees earned a small wage premium of approximately 2 to 3 percent during the 1970s and early 1980s. Second, the government wage premium was substantially higher for federal employees and for women employees. These findings are consistent with earlier studies. (Reprinted by permission of the publisher.)

Human resource management, Civil service, Pay equity

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