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Firm-Size Wage Differentials in Switzerland: Evidence from Job-Changers

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  • Josef Zweimuller
  • Rudolf Winter-Ebmer

Abstract

Using information on job changes and search behavior of workers and controlling for endogenous mobility we study firm-size wage differentials in Switzerland. We find that the observed cross-sectional firm size premium cannot be explained exclusively by worker heterogeneity. Almost 50 % of the cross-section differential is a firm-size effect.

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File URL: http://www.aeaweb.org/articles.php?doi=10.1257/aer.89.2.89
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Bibliographic Info

Article provided by American Economic Association in its journal American Economic Review.

Volume (Year): 89 (1999)
Issue (Month): 2 (May)
Pages: 89-93

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Handle: RePEc:aea:aecrev:v:89:y:1999:i:2:p:89-93

Note: DOI: 10.1257/aer.89.2.89
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  1. Abowd, J.M. & Kramarz, F. & Margolis, D.N., 1995. "High-Wage Workers and High-Wage Firms," Cahiers de recherche 9503, Universite de Montreal, Departement de sciences economiques.
  2. Leonard, J.S. & Van Audenrode, M., 1996. "Persistence of Firm and Individual Wage Components," Papers 9607, Laval - Recherche en Politique Economique.
  3. Brown, Charles & Medoff, James, 1989. "The Employer Size-Wage Effect," Journal of Political Economy, University of Chicago Press, vol. 97(5), pages 1027-59, October.
  4. Hamermesh, Daniel S., 1999. "LEEping into the future of labor economics: the research potential of linking employer and employee data," Labour Economics, Elsevier, vol. 6(1), pages 25-41, March.
  5. Robert Gibbons & Lawrence F. Katz, 1989. "Does Unmeasured Ability Explain Inter-Industry Wage Differentials?," NBER Working Papers 3182, National Bureau of Economic Research, Inc.
  6. Krueger, Alan B & Summers, Lawrence H, 1988. "Efficiency Wages and the Inter-industry Wage Structure," Econometrica, Econometric Society, vol. 56(2), pages 259-93, March.
  7. Solon, Gary, 1988. "Self-selection bias in longitudinal estimation of wage gaps," Economics Letters, Elsevier, vol. 28(3), pages 285-290.
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