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Does size matter? The influence of firm size on working conditions and job satisfaction

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  • Garcia-Serrano, Carlos

Abstract

Using a Spanish survey, this paper investigates the relationship between firm size and working conditions, and whether firm size differences in workers’ job satisfaction can be accounted for by differences in their work environment. The results indicate that: (1) workers in larger firms have a significantly lower level of autonomy and, in general, face worse working conditions; (2) working in large firms has no statistically significant effect on job satisfaction after controlling for working conditions; and (3) no systematic differences exist in worker mobility across firm-size categories. We conclude that observed wage differentials by firm size are utility-equalizing, so they are due to differences in working conditions.

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Bibliographic Info

Paper provided by Institute for Social and Economic Research in its series ISER Working Paper Series with number 2008-30.

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Date of creation: 22 Sep 2008
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Publication status: published
Handle: RePEc:ese:iserwp:2008-30

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Postal: Publications Office, Institute for Social and Economic Research, University of Essex, Wivenhoe Park, Colchester, Essex CO4 3SQ UK
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Web page: https://www.iser.essex.ac.uk/
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Postal: Publications Office, Institute for Social and Economic Research, University of Essex, Wivenhoe Park, Colchester, Essex CO4 3SQ UK
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References

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  1. Clark, Andrew E., 1997. "Job satisfaction and gender: Why are women so happy at work?," Labour Economics, Elsevier, Elsevier, vol. 4(4), pages 341-372, December.
  2. Lallemand, Thierry & Plasman, Robert & Rycx, Francois, 2005. "The Establishment-Size Wage Premium: Evidence from European Countries," IZA Discussion Papers 1569, Institute for the Study of Labor (IZA).
  3. Clark, Andrew E. & Oswald, Andrew J., 1996. "Satisfaction and comparison income," Journal of Public Economics, Elsevier, Elsevier, vol. 61(3), pages 359-381, September.
  4. Alex Bryson & Lorenzo Cappellari & Claudio Lucifora, 2010. "Why So Unhappy? The Effects of Unionization on Job Satisfaction," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 72(3), pages 357-380, 06.
  5. Alex Bryson & Lorenzo Cappellari & Claudio Lucifora, 2003. "Does Union Membership Really Reduce Job Satisfaction?," CEP Discussion Papers dp0569, Centre for Economic Performance, LSE.
  6. Clark, Andrew E., 1999. "Are wages habit-forming? evidence from micro data," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 39(2), pages 179-200, June.
  7. Richard B. Freeman, 1977. "Job Satisfaction as an Economic Variable," NBER Working Papers 0225, National Bureau of Economic Research, Inc.
  8. Clark, Andrew E & Oswald, Andrew J, 1994. "Unhappiness and Unemployment," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 104(424), pages 648-59, May.
  9. Michael E. Gordon & Angelo S. Denisi, 1995. "A re-examination of the relationship between union membership and job satisfaction," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 48(2), pages 222-236, January.
  10. Keith A. Bender & Peter J. Sloane, 1998. "Job satisfaction, trade unions, and exit-voice revisited," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 51(2), pages 222-240, January.
  11. Walter Y. Oi & Todd L. Idson, 1999. "Workers Are More Productive in Large Firms," American Economic Review, American Economic Association, American Economic Association, vol. 89(2), pages 104-108, May.
  12. Oi, Walter Y, 1983. "Heterogeneous Firms and the Organization of Production," Economic Inquiry, Western Economic Association International, Western Economic Association International, vol. 21(2), pages 147-71, April.
  13. Loprest, Pamela J, 1992. "Gender Differences in Wage Growth and Job Mobility," American Economic Review, American Economic Association, American Economic Association, vol. 82(2), pages 526-32, May.
  14. Clive Belfield & R. D. F. Harris, 2002. "How well do theories of job matching explain variations in job satisfaction across education levels? Evidence for UK graduates," Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 34(5), pages 535-548.
  15. Oi, Walter Y. & Idson, Todd L., 1999. "Firm size and wages," Handbook of Labor Economics, Elsevier, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 33, pages 2165-2214 Elsevier.
  16. George J. Borjas, 1979. "Job Satisfaction, Wages, and Unions," Journal of Human Resources, University of Wisconsin Press, vol. 14(1), pages 21-40.
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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. One Reason Big Companies Pay More
    by Brian McCann in managerial econ on 2010-04-05 13:32:00
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Cited by:
  1. Emilia Del Bono & Daniela Vuri, 2008. "Job mobility and the gender wage gap," Working Papers - Dipartimento di Economia 7-DEISFOL, Dipartimento di Economia, Sapienza University of Rome, revised 2008.
  2. Del Bono, Emilia & Vuri, Daniela, 2011. "Job mobility and the gender wage gap in Italy," Labour Economics, Elsevier, Elsevier, vol. 18(1), pages 130-142, January.

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