INTER-INDUSTRY WAGE DIFFERENTIALS IN SINGAPORE

Abstract

This thesis documents and analyzes changes in the wage structure across the various industries in Singapore over the last ten years. Inter-industry differentials in wages are fairly unstable over such a short period for occupations such as chief executive (non-group), financial accountant, office boy, personnel clerk, accounts clerk and secretary. Wage dispersion of chief-executive widens during full employment while in the cases of office boy, personnel clerk and secretary, wage differences narrow during full employment. Our study has shown that characteristics of firms and markets that are associated with high wages are capital-intensity, profitability of industries, labor cost as a proportion of total outlays, and productivity.