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Employer Size Effects in Russia

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  • Todd Idson

Abstract

As early as 1911, Henry L. Moore documented that the wages of female textile workers in Italy were higher in larger establishments. In the last thirty years a large number of studies have demonstrated the presence of employer size-wage effects (at both the plant and firm level) in numerous different countries and across different time periods. This paper analyzes the labor market effects of employer size in Russia during the years 1994-98. Using the Russian Longitudinal Monitoring Survey, a four year nationally representative panel of the Russian population, I investigate the relationship between enterprise size and the characteristics of employees, wage levels and wage growth, on-the-job training, tenure and turnover. My findings indicate that employer size effects in Russia exhibit similar characteristics to those observed in the U.S. and a variety of other countries.

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File URL: http://www.wdi.umich.edu/files/Publications/WorkingPapers/wp300.pdf
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Bibliographic Info

Paper provided by William Davidson Institute at the University of Michigan in its series William Davidson Institute Working Papers Series with number 300.

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Length: pages
Date of creation: 01 Apr 2000
Date of revision:
Handle: RePEc:wdi:papers:2000-300

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Keywords: employer size; wages; wage growth; tenure; turnover;

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References

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  1. Krueger, Alan B & Summers, Lawrence H, 1988. "Efficiency Wages and the Inter-industry Wage Structure," Econometrica, Econometric Society, Econometric Society, vol. 56(2), pages 259-93, March.
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  4. Gibbons, Robert & Katz, Lawrence F, 1992. "Does Unmeasured Ability Explain Inter-industry Wage Differentials?," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 59(3), pages 515-35, July.
  5. Velenchik, A.D., 1995. "Government Intervention, Efficiency Wages, and the Employer-Size Wage Effects in Zimbabwe," Papers, Wellesley College - Department of Economics 95-09, Wellesley College - Department of Economics.
  6. Christoph Schmidt & Klaus Zimmerman, 1990. "Work Characteristics, Firm Size and Wages," Working Papers, Princeton University, Department of Economics, Industrial Relations Section. 644, Princeton University, Department of Economics, Industrial Relations Section..
  7. John M. Abowd & Francis Kramarz & David N. Margolis, 1994. "High Wage Workers and High Wage Firms," NBER Working Papers 4917, National Bureau of Economic Research, Inc.
  8. Rudolf Winter-Ebmer, 1995. "Does layoff risk explain the firm-size wage differential?," Applied Economics Letters, Taylor & Francis Journals, Taylor & Francis Journals, vol. 2(7), pages 211-214.
  9. Wayne Simpson, 1984. "An Econometric Analysis of Industrial Training in Canada," Journal of Human Resources, University of Wisconsin Press, vol. 19(4), pages 435-451.
  10. Svejnar, Jan, 1999. "Labor markets in the transitional Central and East European economies," Handbook of Labor Economics, Elsevier, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 42, pages 2809-2857 Elsevier.
  11. Pearce, James E, 1990. "Tenure, Unions, and the Relationship between Employer Size and Wages," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 8(2), pages 251-69, April.
  12. Barron, John M & Black, Dan A & Loewenstein, Mark A, 1987. "Employer Size: The Implications for Search, Training, Capital Investment, Starting Wages, and Wage Growth," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 5(1), pages 76-89, January.
  13. Brown, Charles & Medoff, James, 1989. "The Employer Size-Wage Effect," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 97(5), pages 1027-59, October.
  14. repec:fth:coluec:512 is not listed on IDEAS
  15. Hartmut Lehmann & Jonathon Wadsworth & Alessandro Acquisti, 1997. "Grime and Punishment: Employment, Wages and Wage Arrears in the Russian Federation," William Davidson Institute Working Papers Series, William Davidson Institute at the University of Michigan 103, William Davidson Institute at the University of Michigan.
  16. Edin, Per-Anders & Zetterberg, Johnny, 1992. "Interindustry Wage Differentials: Evidence from Sweden and a Comparison with the United States," American Economic Review, American Economic Association, American Economic Association, vol. 82(5), pages 1341-49, December.
  17. Idson, Todd L, 1989. "Establishment Size Differentials in Internal Mobility," The Review of Economics and Statistics, MIT Press, vol. 71(4), pages 721-24, November.
  18. Alphonse G. Holtmann & Todd L. Idson, 1995. "Information, Employer Size, Training, and Wage Growth," Eastern Economic Journal, Eastern Economic Association, vol. 21(2), pages 187-196, Spring.
  19. Hashimoto, Masanori & Raisian, John, 1985. "Employment Tenure and Earnings Profiles in Japan and the United States," American Economic Review, American Economic Association, American Economic Association, vol. 75(4), pages 721-35, September.
  20. 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.
  21. Main, Brian G M & Reilly, Barry, 1993. "The Employer Size-Wage Gap: Evidence for Britain," Economica, London School of Economics and Political Science, London School of Economics and Political Science, vol. 60(238), pages 125-42, May.
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Cited by:
  1. Thomas J. Holmes & Matthew F. Mitchell, 2008. "A theory of factor allocation and plant size," RAND Journal of Economics, RAND Corporation, RAND Corporation, vol. 39(2), pages 329-351.

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