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Firm Size, Wages and Production Technology

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Author Info
 Pull, Kerstin

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Abstract

Large firms pay higher wages than small ones. In this paper, the employer-size wage effect is derived with the help of a simple Nash-bargaining model where size is captured by the extent to which the production technology exhibits economies of scale. It can be shown that under reasonable assumptions an increasing returns to scale technology leads to higher wages than a constant or decreasing returns to scale technology. Copyright 2003 by Kluwer Academic Publishers

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Publisher Info
Article provided by Springer in its journal Small Business Economics.

Volume (Year): 21 (2003)
Issue (Month): 3 (November)
Pages: 285-88
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Handle: RePEc:kap:sbusec:v:21:y:2003:i:3:p:285-88

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Web page: http://www.springerlink.com/link.asp?id=100338

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  1. Kelly Edmiston, 2004. "The small business role in economic development," Community Affairs Research Working Paper 2005-01, Federal Reserve Bank of Kansas City. [Downloadable!]
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This page was last updated on 2009-12-22.

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