Title

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

Authors

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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