INTER-INDUSTRIAL WAGE DIFFERENTIALS - EVIDENCE FROM LATIN-AMERICAN COUNTRIES

The recent literature on inter-industrial wage differentials for the United States suggests that the labour market equilibrium features non-competitive elements. However, the lessons from the United States need not carry over to other countries, especially developing economies. This article analyses the wage differentials in selected Latin American countries. Despite the sharp contrasts between the Latin American and the US economies, our results show more similarities than differences with those reported in past studies. Wage differentials are substantial and persist over time; the differentials are also correlated across occupations and, to a lesser extent, across establishment sizes.