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Establishment Size and the Dipsersion of Wages: Evidence from european Countries Author info | Abstract | Publisher info | Download info | Related research | Statistics Therry Lallemand
François Rycx
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We investigate how the wage distribution differs among small and large establishments in four European countries (i.e. Belgium, Ireland, Italy and Spain). To do so, we implement the Juhn, Murphy and Pierce (1993) decomposition of wages following the methodology suggested by Lemieux (2002). Findings show that within-establishment wage dispersion rises with size because large employers have a more diverse workforce. In addition they also suggest that smaller establishments more closely link pay to performance. Further results indicate that between-establishment wage dispersion decreases with employer size because smaller establishments are technologically more diversified and hence exhibit greater diversity in average workforce skills.
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Article provided by Duncker & Humblot, Berlin in its journal Applied Economics Quarterly .
Volume (Year): 52 (2006)
Issue (Month): 4 ()
Pages: 309-336
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Handle: RePEc:aeq:aeqaeq:v52_y2006_i4_q4_p309-336Contact details of provider: Web page: http://www.duncker-humblot.de
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Keywords: Wage structure ; establishment size ; decomposition of wages ; Europe ; Other versions of this item:
Find related papers by JEL classification: J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
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