Warner Presentation Moscow

Slide1: 

Likely suspects for wage determination at the country level conditioning on GDP per worker   Nature of wage-setting institutions (centralized or not) Extent of union coverage or collective bargaining Minimum wage rules International language attainment Intensity of competition in product market Immigration policy (size of foreign born population) Importance of agriculture in economy (reserve army)

Slide2: 

Likely suspects for wage determination at the firm level after conditioning on country characteristics   Size of firm (within the country and worldwide) Industry Type of firm (Public, Private, Domestic, Multinational) Nature of competition in firms’ product market  

Slide3: 

Figure 1 log of annual income of Janitors (in USD) log of GDP per worker (in USD) 6 8 10 12 6 8 10 12 Philippi Korea India Bolivia Denmark South Africa Australia Costa Rica Switzerland Taiwan Japan Jordan Norway El Salvador Turkey Sweden Egypt Finland Spain New Zeal Thailand Colombia Greece Canada Netherlands Vietnam Chile France Venezuela United K China Germany Argentina Belgium Poland Indonesia United S Peru Italy Iceland Zimbabwe Luxembourg Mauritius Ireland Mexico Israel Hong Kong Portugal Bulgaria Brazil Austria Malaysia Czech Re Slovak R Hungary Ukraine Singapore Russia

Slide4: 

Figure 2 log of annual income of Drivers (in USD) log of GDP per worker (in USD) 6 8 10 12 6 8 10 12 Philippi Korea India Japan South Africa Bolivia Switzerland France Jordan Taiwan United K Turkey Finland Denmark Egypt Germany Spain Netherlands Poland Brazil Australia Chile Argentina New Zeal Canada Greece Indonesia El Salvador Norway Sweden United S China Colombia Costa Rica Thailand Vietnam Zimbabwe Venezuela Peru Belgium Mexico Italy Luxembourg Hong Kong Ireland Iceland Israel Malaysia Austria Portugal Czech Re Bulgaria Mauritius Slovak R Hungary Ukraine Singapore Russia

Slide5: 

Figure 3 log of annual income of Secretaries (in USD) log of GDP per worker (in USD) 6 8 10 12 6 8 10 12 Philippi India Zimbabwe Indonesia South Africa Korea Brazil Argentina Egypt Bolivia Thailand Switzerland Taiwan Turkey Denmark Peru Chile Japan Germany United K Australia Costa Rica El Salvador Colombia Hong Kong United S Malaysia Poland Spain France Netherlands Canada Venezuela Jordan Mexico New Zeal Finland Norway Sweden Luxembourg Ireland Belgium Mauritius Austria Greece Portugal Israel Iceland Italy Singapore China Czech Re Slovak R Bulgaria Vietnam Hungary Ukraine Russia

Slide6: 

Figure 4 log of annual income of mid-level managers (in USD) log of GDP per worker (in USD) 6 8 10 12 6 8 10 12 Philippi Brazil Bolivia Chile Colombia Mexico Argentina South Africa Peru India Turkey Zimbabwe Egypt Thailand Costa Rica El Salvador Indonesia Venezuela Hong Kong Korea United S Switzerland United K Poland Australia Japan Germany Denmark France Spain Canada Taiwan Malaysia Mauritius Finland Netherlands New Zeal Jordan Ireland Singapore Luxembourg Norway Italy Portugal Greece Israel Sweden Belgium Austria Iceland Czech Re Slovak R Hungary China Bulgaria Vietnam Ukraine Russia

Slide7: 

Figure 5 log of annual income of top-level managers (in USD) log of GDP per worker (in USD) 6 8 10 12 6 8 10 12 Philippi Mexico Brazil Bolivia Chile Colombia Argentina Egypt India Indonesia Peru Turkey South Africa Thailand Zimbabwe Poland El Salvador Hong Kong Venezuela Costa Rica United S France Germany United K Switzerland Korea Canada Australia Finland Malaysia Denmark Mauritius Japan Luxembourg Spain Jordan Singapore New Zeal Netherlands Sweden Israel Greece Portugal Italy Ireland Taiwan Austria Slovak R Norway Hungary Belgium Czech Re Iceland China Bulgaria Vietnam Ukraine Russia

Slide8: 

1/2*(union density+collective bargaining coverage) Wage setting is not centralized 2.1 6.1 17 90 Australia Austria Belgium Canada Denmark Finland France Germany Italy Japan Netherlands New Zeal Norway Portugal Spain Sweden Switzerland United K United S Figure 6

Slide9: 

coefficient = -.196343, (robust) se = .0348467, t = -5.63 e(wage mid managers) e( GDP*FL ) -3.52145 3.37534 -1.2322 1.09463 Figure 7

Slide10: 

coefficient = 2.0639014, (robust) se = .34197561, t = 6.04 Orthogonal part of salary for mid manager Orthogonal part of FL -.408211 .303651 -1.32537 1.03506 Figure 8

Slide11: 

Ln (Top-Manager Salary) Ln(GDP/L) 6.725 11.297 6.944 11.791 Russia India Vietnam Zimbabwe China Ukraine Belgium Hungary Japan Mauritius Jordan Bulgaria Taiwan Austria Netherlands Italy Czech Re Norway New Zeal Singapore Iceland Israel South Africa France Ireland Sweden Malaysia Costa Rica Spain Portugal Germany Australia Greece Canada Finland Turkey El Salvador Korea Philippi United K Poland Denmark Thailand Chile United S Brazil Hong Kong Peru Egypt Mexico Argentina Switzerland Indonesia Venezuela Colombia Bolivia Slovak R Estimated slope with low foreign language attainment of managers = 1.09 Estimated slope with high foreign language attainment of managers = 0.19 Figure 9