This paper develops a search-theoretic explanation of interindustry wage differentials. Given coordination problems in the labor market, the probability of filling a vacancy is an increasing function of the wage offered; in equilibrium, firms that find vacancies more costly will offer higher wages. The model thus explains the persistence of interindustry wage differentials and their correlation with industry-average capital-labor ratio and profitability. Additionally, the model predicts that high-wage firms will receive more applications per job opening and that wages in the labor market will behave as strategic complements.

Abstract Reviews the book "Cash Flow Accounting," edited by Barry E. Hicks and Pearson Hunt.

Abstract Reviews the book "Accounting: A Programmed Text," vol. 2, by James Don Edwards, Roger H. Hermanson and R.F. Salmonson.

In this paper we use micro data from the Employment Opportunity Pilot Project (EOPP) surveys of firms in 1980 and 1982 to test for labor market rigidities and asymmetries in response to demand shifts.We analyze wage and employment adjustments to positive and negative shifts, as measured by sales growth between 1979 and 1981.The analysis is done for both entire sample of firms and for selected subsamples based on firm size, unionization, industry and skill mix.The results show that wage adjustments appear to be fairly rigid, compared with employment adjustments.They also appear to be quite asymmetric, with significant adjustments in response to positive shifts but little adjustment in response to negative shifts.These asymmetries are not more pronounced in large firms, manufacturing, heavily-waged or highly-skilled industries than in other firms or industries.pattern of asymmetry.

The presence of potentially binding constraints in rural labor markets is investigated by examining spillover effects on land market participation decisions. Farm and household data from ICRISAT village level surveys are used in a multinominial logit model that accounts for the simultaneous nature of the land and labor market participation decisions. Estimated parameters and likelihood ratio tests indicate that except for the presence of potentially binding constraint on the supply of female labor off the farm no other evidence of binding constraints is present in these villages. Copyright 1990 by MIT Press.