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Firm Size Wage Differentials in Switzerland: Evidence from Job Changers

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  • Rudolf Winter-Ebmer
  • Josef Zweimueller

Abstract

Using information on job changes and search behavior of workers and controlling for endogenous mobility we study firm-size wage differentials in Switzerland. We find that the observed cross-sectional firm size premium cannot be explained exclusively by worker heterogeneity. Almost 50 % of the cross-section differential is a firm-size effect.

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Paper provided by Institute for Empirical Research in Economics - University of Zurich in its series IEW - Working Papers with number 001.

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Handle: RePEc:zur:iewwpx:001

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Keywords: Wage Differentials; Job Mobility; Firm Size;

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  1. John M. Abowd & Francis Kramarz & David N. Margolis, 1994. "High-Wage Workers and High-Wage Firms," CIRANO Working Papers 94s-23, CIRANO.
  2. Brown, Charles & Medoff, James, 1989. "The Employer Size-Wage Effect," Journal of Political Economy, University of Chicago Press, vol. 97(5), pages 1027-59, October.
  3. Leonard, Jonathan S. & Van Audenrode, Marc, 1996. "Persistence of Firm and Individual Wage Components," Cahiers de recherche 9607, Université Laval - Département d'économique.
  4. Robert Gibbons & Lawrence F. Katz, 1992. "Does Unmeasured Ability Explain Inter-Industry Wage Differentials?," NBER Working Papers 3182, National Bureau of Economic Research, Inc.
  5. Hamermesh, Daniel S., 1999. "LEEping into the future of labor economics: the research potential of linking employer and employee data," Labour Economics, Elsevier, vol. 6(1), pages 25-41, March.
  6. Solon, Gary, 1988. "Self-selection bias in longitudinal estimation of wage gaps," Economics Letters, Elsevier, vol. 28(3), pages 285-290.
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