Firm Size, Technical Change And Wages In The Pork Sector, 1990 -2005
AbstractEconomists have long puzzled over the fact that large firms pay higher wages than small firms, even after controlling for workerâ€™s observed productive characteristics. One possible explanation has been that firm size is correlated with unobserved productive attributes which confound firm size with other productive characteristics. This study investigates the size-wage premium in the context of firms competing within a single market for a relatively homogeneous product: hogs. We pay particular attention to the matching process by which workers are linked to farms of different size and technology use, and whether the matching process may explain differences in wages across farms. The study relies on four surveys of employees on hog farms collected in 1990, 1995, 2000, and 2005. We find that there are large wage premia paid to workers on larger farms that persist over time. Although more educated and experienced workers are more likely to work on larger and more technologically advanced hog farms, the positive relationships between wages and both farm size and technology adoption remain large and statistically significant even after controlling for differences in observable worker attributes and in the observed sorting process of workers across farms.
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Bibliographic InfoPaper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 12921.
Date of creation: 18 Apr 2008
Date of revision:
Publication status: Published in Journal of Agricultural and Resource Economics, August 2012, vol. 37 no. 2, pp. 263-279
Contact details of provider:
Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
Phone: +1 515.294.6741
Fax: +1 515.294.0221
Web page: http://www.econ.iastate.edu
More information through EDIRC
pork; technology; Hog Farms; Wages; Propensity Score; Size; Wage Premium;
Other versions of this item:
- Yu, Li & Hurley, Terrance M. & Kliebenstein, James B. & Orazem, Peter F., 2012. "Firm Size, Technical Change, and Wages in the Pork Sector, 1990-2005," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 37(2), August.
- Yu, Li & Hurley, Terrance M. & Kliebenstein, James & Orazem, Peter, 2012. "Firm Size, Technical Change and Wages in the Pork Sector, 1990-2005," Staff General Research Papers 35971, Iowa State University, Department of Economics.
- J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General
This paper has been announced in the following NEP Reports:
- NEP-AGR-2008-04-29 (Agricultural Economics)
- NEP-ALL-2008-04-29 (All new papers)
- NEP-LAB-2008-04-29 (Labour Economics)
- NEP-TID-2008-04-29 (Technology & Industrial Dynamics)
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