Impact of the worker's employment probability on wage rates

The employment probability is a significant determinant of the worker's wage rate, expecially in the presence of employers' hiring discrimination. Several tests suggest that the omission of this variable in the wage regression may lead to misspecification.

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Bibliographic Details
Published in:Applied economics 1995-02, Vol.27 (2), p.225-230
Main Authors: Mohanty, Madhu S., Larson, Tom
Format: Article
Language:English
Subjects:
Applied economics
Economic models
Economics
Employment
Probability
Regression analysis
Studies
Wage rates
Wage-employment relationship
Wages & salaries
Citations: Items that this one cites
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Description
Summary:The employment probability is a significant determinant of the worker's wage rate, expecially in the presence of employers' hiring discrimination. Several tests suggest that the omission of this variable in the wage regression may lead to misspecification.
ISSN:0003-6846
1466-4283
DOI:10.1080/00036849500000028