2000 18 university of california san diego department economics market responses to interindustry wage differentials by george j borjas and valerie a ramey discussion paper july both authors thank the national science foundation for research support also thanks sloan abstract this examines link between subsequent growth industry variables such as employment gdp labor productivity we find that industries paid higher than average wages in 1959 experienced significantly lower 30 40 years while at same time experiencing capital ratio argue evidence is best explained non competitive model structure firms respond rigidity implied long run persistence kennedy school government harvard 79 jfk street la jolla ca 92093 cambridge
