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Firm-Size Wage Differentials in Switzerland: Evidence from Job-Changers

Author

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  • Josef Zweimuller
  • Rudolf Winter-Ebmer

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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Suggested Citation

  • Josef Zweimuller & Rudolf Winter-Ebmer, 1999. "Firm-Size Wage Differentials in Switzerland: Evidence from Job-Changers," American Economic Review, American Economic Association, vol. 89(2), pages 89-93, May.
    • Handle: RePEc:aea:aecrev:v:89:y:1999:i:2:p:89-93
    Note: DOI: 10.1257/aer.89.2.89
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    File URL: http://www.aeaweb.org/articles.php?doi=10.1257/aer.89.2.89
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    References listed on IDEAS

    as
    1. Robert Gibbons & Lawrence Katz, 1992. "Does Unmeasured Ability Explain Inter-Industry Wage Differentials?," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 59(3), pages 515-535.
    2. Krueger, Alan B & Summers, Lawrence H, 1988. "Efficiency Wages and the Inter-industry Wage Structure," Econometrica, Econometric Society, vol. 56(2), pages 259-293, March.
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    4. John M. Abowd & Francis Kramarz & David N. Margolis, 1999. "High Wage Workers and High Wage Firms," Econometrica, Econometric Society, vol. 67(2), pages 251-334, March.
    5. Solon, Gary, 1988. "Self-selection bias in longitudinal estimation of wage gaps," Economics Letters, Elsevier, vol. 28(3), pages 285-290.
    6. Albaek, Karsten & Arai, Mahmood & Asplund, Rita, 1995. "Employer Size-Effectsin the Nordic Countries," Discussion Papers 532, The Research Institute of the Finnish Economy.
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    More about this item

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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