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Ownership and Authority in the Earnings Function: Nonnested Tests of Alternative Specifications

Charles N. Halaby and David L. Weakliem
American Sociological Review
Vol. 58, No. 1 (Feb., 1993), pp. 16-30
Stable URL: http://www.jstor.org/stable/2096214
Page Count: 15
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Ownership and Authority in the Earnings Function: Nonnested Tests of Alternative Specifications
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Abstract

Sociological research on earnings usually employs models that take account of an individual's position or job. One prominent line of thought and research emphasizes the command and control properties that derive from a job's location in the ownership and domination structure of the workplace. Efforts to conceptualize the relevant job properties and parameterize their effects have yielded a variety of earnings regression specifications. We report statistical tests that compare earnings models based on alternative specifications of an individual's location in the structure of ownership and domination. We focus on a few leading specifications, especially Wright's class typologies. We use a version of the Cox specification test for comparing separate, nonnested models. Wright's class typologies are rejected, as are other specifications used in past research. The results favor a new, easily implemented and intuitively appealing specification of the effects of ownership and authority on earnings.

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