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This paper reviews available evidence on the inter-industry wage structure. The inter-industry wage structure is remarkably similar in different eras, in different countries, and among different types of workers. Industries with high capital-to- labor ratios, monopoly power and high profits pay relatively high wages. We conclude that the competitive model cannot without substantial modification provide an adequate explanation of the inter-industry wage structure. The implications of this finding for micro and macro economic theory and policy are examined.
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Krueger et al. (1986) studied this question.