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Essays on external conditions and wa...

University of California, Berkeley.

Essays on external conditions and wage-setting within firms (Mexico).

Record Type:	Electronic resources : Monograph/item
Title/Author:	Essays on external conditions and wage-setting within firms (Mexico).
Author:	Verhoogen, Eric Andrew.
Description:	164 p.
Notes:	Chairs: David Card; Pranab Bardhan.
Notes:	Source: Dissertation Abstracts International, Volume: 65-09, Section: A, page: 3508.
Contained By:	Dissertation Abstracts International65-09A.
Subject:	Economics, Labor.
Online resource:	http://pqdd.sinica.edu.tw/twdaoapp/servlet/advanced?query=3147038
ISBN:	049605564X

Essays on external conditions and wage-setting within firms (Mexico).
Verhoogen, Eric Andrew.

Essays on external conditions and wage-setting within firms (Mexico). - 164 p.

Chairs: David Card; Pranab Bardhan.

Thesis (Ph.D.)--University of California, Berkeley, 2004.

Chapter 2, "Trade, Quality Upgrading and Wage Inequality in the Mexican Manufacturing Sector," examines the response of plants in the Mexican manufacturing sector to the shock to product market conditions generated by the peso crisis of late 1994, and the differential consequences for wages of blue-collar and white-collar workers. Section 2.1 presents a case study of one particularly important plant, the Volkswagen plant in Puebla, Mexico. Section 2.2 presents a new theoretical model that spells out formally why we might expect the change in product market conditions brought about by an exchange rate shock to have an impact on wage decisions within firms. Firms are heterogeneous in an underlying productivity parameter that can be interpreted as technical know-how or entrepreneurial ability and goods are differentiated in quality. Within each industry, only the most productive firms in a developing country like Mexico enter the export market, and they produce a better-quality good for export than for the domestic market in order to appeal to richer developed-country consumers. Producing high-quality goods in turn requires paying high wages to both white-collar and blue-collar employees, but especially to white-collar employees. An increase in the incentive to export leads to differential quality upgrading within industries.

ISBN: 049605564XSubjects--Topical Terms:

212660
Economics, Labor.

Essays on external conditions and wage-setting within firms (Mexico).
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100 0 $a Verhoogen, Eric Andrew. $3 227987
245 1 0 $a Essays on external conditions and wage-setting within firms (Mexico).
300 $a 164 p.
500 $a Chairs: David Card; Pranab Bardhan.
500 $a Source: Dissertation Abstracts International, Volume: 65-09, Section: A, page: 3508.
502 $a Thesis (Ph.D.)--University of California, Berkeley, 2004.
520 # $a Chapter 2, "Trade, Quality Upgrading and Wage Inequality in the Mexican Manufacturing Sector," examines the response of plants in the Mexican manufacturing sector to the shock to product market conditions generated by the peso crisis of late 1994, and the differential consequences for wages of blue-collar and white-collar workers. Section 2.1 presents a case study of one particularly important plant, the Volkswagen plant in Puebla, Mexico. Section 2.2 presents a new theoretical model that spells out formally why we might expect the change in product market conditions brought about by an exchange rate shock to have an impact on wage decisions within firms. Firms are heterogeneous in an underlying productivity parameter that can be interpreted as technical know-how or entrepreneurial ability and goods are differentiated in quality. Within each industry, only the most productive firms in a developing country like Mexico enter the export market, and they produce a better-quality good for export than for the domestic market in order to appeal to richer developed-country consumers. Producing high-quality goods in turn requires paying high wages to both white-collar and blue-collar employees, but especially to white-collar employees. An increase in the incentive to export leads to differential quality upgrading within industries.
520 # $a Chapter 3, "Fairness and Freight-Handlers," examines changes in the fairness perceptions and performance of employees in the freight-handling terminals of a U.S. trucking firm in response to changes in unemployment rates and the wages of similar workers in the local labor markets surrounding each terminal. It draws on evidence from an internal attitude survey of dockworkers at 29 geographically dispersed freight-handling terminals yearly over the period 1996--2000. The key element of the research design is that wages at each terminal are determined in collective bargaining at a national and regional level, and local managers have no discretion to vary wage rates in response to local labor market conditions. As a result, economic shocks in the local area generate exogenous variation in the attractiveness of the wage paid by the firm relative to employees' options in the outside labor market. We relate this variation in the relative wage to employees' perceptions of the fairness of their wage and to their performance, as measured by the rate of disciplinary dismissals. (Abstract shortened by UMI.)
520 # $a This dissertation presents two essays investigating the influence of conditions external to firms on wage-setting within them.
590 $a School code: 0028.
650 # 0 $a Economics, Labor. $3 212660
650 # 0 $a Economics, General. $3 212429
690 $a 0501
690 $a 0510
710 0 # $a University of California, Berkeley. $3 212474
773 0 # $g 65-09A. $t Dissertation Abstracts International
790 $a 0028
790 1 0 $a Bardhan, Pranab, $e advisor
790 1 0 $a Card, David, $e advisor
791 $a Ph.D.
792 $a 2004
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