A comparison of different estimates of interindustry wage differentials: the case of Brazil
This paper compares the results from two procedures for estimating wage differentials. Using Brazilian data, the standard procedure of Krueger and Summers (Econometrica, 56, 259-193, 1988) is shown to provide an overestimation of standard errors and a biased estimation of the measure of wage dispersion, in comparison to the methodology proposed by Haisken-DeNew and Schmidt (Review of Economics and Statistics, forthcoming, 1997).