Not content to sit on the sidelines, upholders of neoclassical orthodoxy criticized institutionalist theory on methodological grounds. Institutionalist theory, they claimed, was overly dependent on short- as opposed to long-run determinations. Institutionalists replied that orthodox neoclassical theory had yet to explain the widespread and persistent pattern of inter-industry wage differentials between workers with nearly identical productivity characteristics, an undeniable fact uncovered repeatedly by institutionalist research.
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