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A Selectivity Model of Employer-Size Wage Differentials

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Author Info
Idson, Todd L
Feaster, Daniel J

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Abstract

This article investigates wage differentials for employees of different size firms utilizing an econometric methodology that allows the size of employer to be treated as endogenous in the context of discrete ordered employer-size data. As a result, the authors are able to estimate (1) employer-size wage gaps, which are corrected for selectivity bias, and (2) the magnitude and direction of the selection bias. Decompositions of the resulting wage differentials are computed, with comparisons of the conditional (on sorting across employer size) and unconditional wage gaps. Copyright 1990 by University of Chicago Press.

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Publisher Info
Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 8 (1990)
Issue (Month): 1 (January)
Pages: 99-122
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Handle: RePEc:ucp:jlabec:v:8:y:1990:i:1:p:99-122

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  3. Drolet, Marie & Morissette, René, 1998. "Recent Canadian Evidence on Job Quality by Firm Size," Analytical Studies Branch Research Paper Series 1998128e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
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  5. Knut Gerlach & OLAF HÜBLER, 1998. "Firm Size and Wages in Germany – Trends and Impacts of Mobility," Empirica, Springer, vol. 25(3), pages 245-261, January. [Downloadable!] (restricted)
  6. Malchow-Møller, Nikolaj & Markusen, James R. & Schjerning, Bertel, 2007. "Foreign Firms, Domestic Wages," CEPR Discussion Papers 6292, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  7. José António Cabral Vieira & João Pedro Almeida Couto & Maria Teresa Borges Tiago, 2005. "Inter-regional Wage Dispersion in Portugal," ERSA conference papers ersa05p160, European Regional Science Association. [Downloadable!]
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  8. Skoufias, Emmanuel, 1999. "The structure of wages during the economic transition in Romania," FCND discussion papers 57, International Food Policy Research Institute (IFPRI). [Downloadable!]
  9. Julie L. Hotchkiss & M. Melinda Pitts, 2003. "Female labor force intermittency and current earnings: a switching regression model with unknown sample selection," Working Paper 2003-33, Federal Reserve Bank of Atlanta. [Downloadable!]
  10. Feng, Shuaizhang, 2009. "Return to Training and Establishment Size: A Reexamination of the Size-Wage Puzzle," IZA Discussion Papers 4143, Institute for the Study of Labor (IZA). [Downloadable!]
  11. Richard Harris, 1994. "Manual Wage Differentials, Collective Bargaining and Multi-locational Firms: An Analysis Using Northern Ireland NES Data," Regional Studies, Taylor and Francis Journals, vol. 28(5), pages 483-493, August. [Downloadable!] (restricted)
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  13. Julie L. Hotchkiss & M. Melinda Pitts, 2005. "Female labour force intermittency and current earnings: switching regression model with unknown sample selection," Applied Economics, Taylor and Francis Journals, vol. 37(5), pages 545-560, March. [Downloadable!] (restricted)
  14. Todd R. Zenger & Sergio G. Lazzarini, 2004. "Compensating for innovation: Do small firms offer high-powered incentives that lure talent and motivate effort?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 25(6-7), pages 329-345. [Downloadable!]
  15. Paul Hettler, 2007. "The Decomposition of Firm-size Wage Differentials," Journal of Labor Research, Springer, vol. 28(3), pages 477-486, July. [Downloadable!] (restricted)
  16. Todd Idson & Hollis Price, 1992. "Analysis of wage differentials by gender and ethnicity in the public sector," The Review of Black Political Economy, Springer, vol. 20(3), pages 75-98, March. [Downloadable!] (restricted)
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