Individual pay differentials in greece

Abstract

The present paper analyses the pay differentials among Greek employees in 1964 by making use of a random sample made up of 1076 males employed in commerce and industry in the Athens area. The theoretical background is the standard supply of and demand for labour framowork. This leads to an expanded earnings function incorporating personal characteristics (human capital) and job (firm) characteristics. The well known Mincerian type earnings function is modified in a way which allows estimation of the rates of return to firm specific
and general training and inclusion of additional variables as well. Estimates of the relationship between earnings and the explanatory variables show that both supply and demand forces do matter in pay determinatio