Is Bigger Still Better? The Decline of the Wage Premium at Large Firms
AbstractThis study shows that the wage premium paid by large firms fell over the past 20 years and that the decline in the size premium has been most pronounced among the least educated work force. Empirical evidence supports several explanations for the decline in the size premium. First, there has been a convergence in the returns to worker characteristics at large and small firms over time. Second, there has been a convergence in the types of workers employed at small and large firms. Particularly important have been changes in the distribution of workers across industries and the greater rate of decline in unionism at large firms.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4082.
Length: 29 pages
Date of creation: Mar 2009
Date of revision:
Publication status: published in: Southern Economic Journal, 2012, 78(4), 1181-1201
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Other versions of this item:
- William E. Even & David A. Macpherson, 2012. "Is Bigger Still Better? The Decline of the Wage Premium at Large Firms," Southern Economic Journal, Southern Economic Association, vol. 78(4), pages 1181-1201, April.
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
- J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-04-13 (All new papers)
- NEP-BEC-2009-04-13 (Business Economics)
- NEP-LAB-2009-04-13 (Labour Economics)
- NEP-LTV-2009-04-13 (Unemployment, Inequality & Poverty)
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