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Firm-Size and Inter-hierarchy Wage Dispersion in Shanghai

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Author Info

  • Vinod Mishra

    ()
    (Monash University)

  • Russell Smyth

    ()
    (Monash University)

Abstract

For a sample of Shanghai firms, we find that while larger firms pay lower wages, managers in larger firms still receive higher wages. There are two reasons for this result. The wage gap between managers and non-managers is positively correlated with firm size and larger firms have a lower percentage of middle and high-level managers than small firms.

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File URL: http://www.accessecon.com/Pubs/EB/2011/Volume31/EB-11-V31-I3-P195.pdf
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Bibliographic Info

Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 31 (2011)
Issue (Month): 3 ()
Pages: 2159-2166

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Handle: RePEc:ebl:ecbull:eb-10-00598

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Keywords: Firm size; hierarchy; wages;

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References

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  1. Wenshu Gao & Russell Smyth, 2009. "Firm Size And Wages In China," Development Research Unit Working Paper Series 05-09, Monash University, Department of Economics.
  2. Moulton, Brent R, 1990. "An Illustration of a Pitfall in Estimating the Effects of Aggregate Variables on Micro Unit," The Review of Economics and Statistics, MIT Press, vol. 72(2), pages 334-38, May.
  3. Oi, Walter Y. & Idson, Todd L., 1999. "Firm size and wages," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 33, pages 2165-2214 Elsevier.
  4. Knight, John & Li, Shi, 2005. "Wages, firm profitability and labor market segmentation in urban China," China Economic Review, Elsevier, vol. 16(3), pages 205-228.
  5. Meagher, Kieron J. & Wilson, Hugh, 2004. "Different firm size effects on wages for supervisors and workers," Economics Letters, Elsevier, vol. 84(2), pages 225-230, August.
  6. Calvo, Guillermo A & Wellisz, Stanislaw, 1979. "Hierarchy, Ability, and Income Distribution," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 991-1010, October.
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