A quality adjusted wage index

Jennjou Chen, J. S. Butler

Research output: Contribution to journalArticlepeer-review


In this paper, a new method of estimating a wage index is proposed and implemented. We construct a wage index by controlling for quantity, as well as quality of labor. Our approach uses a set of year dummies as the basis for calculation of a wage index. The March Current Population Survey Supplement (1983-2000) is employed, and empirical wage equation models are estimated in this paper. The estimation results of the proposed wage index suggest that the existing Employment Cost Index perhaps overestimates the increases in wages adjusted for quality.

Original languageEnglish
JournalEconomics Bulletin
Issue number1
StatePublished - 2006

ASJC Scopus subject areas

  • General Economics, Econometrics and Finance


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