Abstract
The evolution of the industrial earnings structure: the 'geological theory.' This paper examines John T. Dunlop's thesis that the contemporary interindustry earnings structure of a country the United States in this study reflects the course of the nation's industrialization. The theory is termed 'geological' because the contemporary wage structure is viewed as having evolved by an essentially geological process. The oldest manufacturing industries (e.g. textiles, footwear, etc.) had to offer a wage premium in order to secure the necessary transfer of manpower from agriculture. Subsequently, non-economic forces of custom and tradition have successfully maintained the transitory pay differential. Each subsequent new industry had to attract employees by offering increasingly attractive wages. The newest industries (e.g. computers, aircraft) now pay the highest wage premiums. Alternative regression models are employed in support of the thesis.
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