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The Establishment-Size Wage Premium: Evidence from European Countries

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Author Info
Thierry Lallemand (Free University of Brussels, DULBEA and Centre de Comptabilité, Planning et Contrôle)
Robert Plasman (Free University of Brussels and DULBEA)
François Rycx () (Free University of Brussels, DULBEA and IZA Bonn)

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Abstract

This study examines the magnitude and determinants of the establishment-size wage premium in five European countries using a unique harmonised matched employer-employee data set. Findings show the existence of a significant positive wage premium in all countries, even when controlling for labour quality, working conditions, monitoring, sectoral and regional effects, bargaining institutions, job stability, and concentration of skilled workers. In crossnational perspective, results support the existence of an inverse relationship between the size wage gap and the degree of corporatism. Final results indicate that the size wage premium is generally larger in the manufacturing sector and for blue-collar workers.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1569.

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Length: 32 pages
Date of creation: Apr 2005
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Handle: RePEc:iza:izadps:dp1569

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Related research
Keywords: establishment-size and wages; matched employer-employee data; Europe;

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Find related papers by JEL classification:
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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