Firm Size And Wages In Italy: Evidence From Exogenous Job Displacements
AbstractWe use longitudinal data based on administrative archives from 1985 to 2002 to estimate the relationship between wages and firm size for Italy. Controlling for individual fixed effects we find that larger firms pay significantly higher wages, although the individual unmeasured ability component accounts for about one half of the uncovered size-wage premium. To reduce potential self-selection problems arising from endogenous job changes, we focus on a sample of workers displaced by plant closings. Using this sample, we confirm that larger firms pay higher wages in part for unmeasured workers’ abilities and in part for true size effects.
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Bibliographic InfoPaper provided by Università della Calabria, Dipartimento di Economia, Statistica e Finanza (Ex Dipartimento di Economia e Statistica) in its series Working Papers with number 201201.
Length: 16 pages
Date of creation: Jan 2012
Date of revision:
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Postal: Università della Calabria, Dipartimento di Economia, Statistica e Finanza, Ponte Pietro Bucci, Cubo 0/C, I-87036 Arcavacata di Rende, CS, Italy
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Web page: http://www.unical.it/portale/strutture/dipartimenti_240/disesf/
More information through EDIRC
Firm Size; Wage Differentials; Panel Data; Exogenous Job Changes;
Find related papers by JEL classification:
- J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
- M51 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics - - - Firm Employment Decisions; Promotions
- J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-03-08 (All new papers)
- NEP-HME-2012-03-08 (Heterodox Microeconomics)
- NEP-LAB-2012-03-08 (Labour Economics)
- NEP-LMA-2012-03-08 (Labor Markets - Supply, Demand, & Wages)
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