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Does layoff risk explain the firm-size wage differential?

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  • Rudolf Winter-Ebmer

Abstract

If less stable (and also less able) workers select themselves into small, unstable and lowpaying firms, predicted layoff risk of workers can be used as a proxy for heterogeneity of workers and should therefore be included in wage regressions. Doing this, one third of the size earnings premium can be explained.

Suggested Citation

  • Rudolf Winter-Ebmer, 1995. "Does layoff risk explain the firm-size wage differential?," Applied Economics Letters, Taylor & Francis Journals, vol. 2(7), pages 211-214.
    • Handle: RePEc:taf:apeclt:v:2:y:1995:i:7:p:211-214
    DOI: 10.1080/135048595357285
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    Cited by:

    1. Coban, Mustafa, 2017. "Wage mobility, wage inequality, and tasks: Empirical evidence from Germany, 1984-2014," Discussion Paper Series 139, Julius Maximilian University of Würzburg, Chair of Economic Order and Social Policy.
    2. S. Dobbelaere, 2003. "Ownership, Firm Size and Rent Sharing in a Transition Country," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 03/170, Ghent University, Faculty of Economics and Business Administration.
    3. Kristina Nyström, 2021. "Working for an entrepreneur: heaven or hell?," Small Business Economics, Springer, vol. 56(2), pages 919-931, February.
    4. Kristina Nyström & Gulzat Zhetibaeva Elvung, 2015. "New Firms as Employers: The Wage Penalty for Voluntary and Involuntary Job Switchers," LABOUR, CEIS, vol. 29(4), pages 348-366, December.
    5. Todd Idson, 2000. "Employer Size Effects in Russia," William Davidson Institute Working Papers Series 300, William Davidson Institute at the University of Michigan.
    6. Dobbelaere, Sabien, 2004. "Ownership, firm size and rent sharing in Bulgaria," Labour Economics, Elsevier, vol. 11(2), pages 165-189, April.
    7. repec:eee:labchp:v:3:y:1999:i:pb:p:2165-2214 is not listed on IDEAS

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