Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/175928
Authors: 
Ivrendi, Mehmet
Guloglu, Bulent
Yetkiner, Y. Hakan
Year of Publication: 
2013
Series/Report no.: 
Working Papers in Economics 13/04
Abstract: 
This paper presents empirical evidence that the neoclassical explanation of real wage has a high explanatory power at macro level. The factor endowments explanation of wage is surprisingly rare in the literature, at least at empirical level. In this paper, using panel data from 26 OECD countries, we show that technology and factor endowments (physical capital and labor stocks) have a significant explanatory power on the determination of real wage. Based on our results, we speculate that the supply-side rather than demand-side variables may be the major source of wage differences across countries.
Subjects: 
wage
factor endowment
inter-country wage differences
panel data
JEL: 
J31
C23
E23
E24
Document Type: 
Working Paper
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