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Wage differentials across firms: an application of multilevel modelling

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Author Info
A. R. Cardoso (Minho University, Braga, Portugal, NIMA and CEPR)

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Abstract

Multilevel modelling techniques are applied to a dataset that matches firms and workers, to pinpoint and explain contrasts among company wage policies. Results indicate that wage differences across firms are statistically significant, affecting every parameter of the pay policy (returns to schooling, tenure, experience, the penalty imposed on newly hired workers and on women). Gross labour productivity, average schooling in the firm, firm size and economic sector are relevant forces shaping the contrast between employers' pay policies. Copyright © 2000 John Wiley & Sons, Ltd.

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File URL: http://qed.econ.queensu.ca:80/jae/2000-v15.4/
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Publisher Info
Article provided by John Wiley & Sons, Ltd. in its journal Journal of Applied Econometrics.

Volume (Year): 15 (2000)
Issue (Month): 4 ()
Pages: 343-354
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Handle: RePEc:jae:japmet:v:15:y:2000:i:4:p:343-354

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Kremer, Michael, 1993. "The O-Ring Theory of Economic Development," The Quarterly Journal of Economics, MIT Press, vol. 108(3), pages 551-75, August. [Downloadable!] (restricted)
  2. William Gould & William Rogers, 1992. "Summary of Tests of Normality," Stata Technical Bulletin, StataCorp LP, vol. 1(3). [Downloadable!]
  3. Janet Currie & Sheena McConnell, 1992. "Firm-Specific Determinants of the Real Wage," NBER Working Papers 4023, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  4. Groshen, Erica L, 1991. "Sources of Intra-industry Wage Dispersion: How Much Do Employers Matter?," The Quarterly Journal of Economics, MIT Press, vol. 106(3), pages 869-84, August. [Downloadable!] (restricted)
  5. Knight, J B & Sabot, R H, 1983. "The Role of the Firm in Wage Determination: An African Case Study," Oxford Economic Papers, Oxford University Press, vol. 35(1), pages 45-66, March. [Downloadable!] (restricted)
  6. Kramarz, F. & Lolliver, S. & Pele, L.P., 1995. "Wage Inequalities with Firm-specific Compensation Policies in Finance," Papers 9518, Institut National de la Statistique et des Etudes Economiques-.
  7. John M. Abowd & Francis Kramarz & David N. Margolis, 1999. "High Wage Workers and High Wage Firms," Econometrica, Econometric Society, vol. 67(2), pages 251-334, March.
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Andrea Manca & Nigel Rice & Mark J. Sculpher & Andrew H. Briggs, 2005. "Assessing generalisability by location in trial-based cost-effectiveness analysis: the use of multilevel models," Health Economics, John Wiley & Sons, Ltd., vol. 14(5), pages 471-485. [Downloadable!]
  2. João Carlos Cerejeira da Silva, 2003. "Local Human Capital Externalities or Sorting? Evidence From a Displaced Workers Sample," NIPE Working Papers 9/2003, NIPE - Universidade do Minho. [Downloadable!]
  3. Cardoso, Ana Rute, 2004. "Wage Mobility: Do Institutions Make a Difference? A Replication Study Comparing Portugal and the UK," IZA Discussion Papers 1086, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  4. Stephan, Gesine & Gerlach, Knut, 2004. "Collective contracts, wages and wage dispersion in a multi-level model," IAB Discussion Paper 200406, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]. [Downloadable!]
  5. Stephen Pudney & Nikolaos Theodoropoulos, . "Firm-Specific Gender and Ethnicity Pay Differentials in Britain," University of Cyprus Working Papers in Economics 9-2006, University of Cyprus Department of Economics. [Downloadable!]
  6. Stefan Hochguertel & Henry Ohlsson, 2007. "Compensatory Inter Vivos Gifts," Tinbergen Institute Discussion Papers 07-074/3, Tinbergen Institute. [Downloadable!]
    Other versions:
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