Underpaid And Overworked - Measuring The Effect Of Imperfect Information On Wages

    Authors

    R. A. Hofler;K. J. Murphy

    Comments

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    Abbreviated Journal Title

    Econ. Inq.

    Keywords

    Economics

    Abstract

    This paper investigates the degree of shortfall between the wages workers earn and what they could earn assuming perfect or costless information in the labor market. We use the stochastic frontier regression technique to estimate the degree of shortfall found in wages on an individual basis. The paper tests, in addition, a number of hypotheses supplied by search theory in this context. The results generally confirm the propositions from search theory and indicate that, on the average, worker wages fall short of worker potential wages by approximately 10 percent.

    Journal Title

    Economic Inquiry

    Volume

    30

    Issue/Number

    3

    Publication Date

    1-1-1992

    Document Type

    Article

    Language

    English

    First Page

    511

    Last Page

    529

    WOS Identifier

    WOS:A1992JF38000008

    ISSN

    0095-2583

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