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The Skilled Wage Premium and the Growth of Small Firms in UK Manufacturing

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  • Jonathan Haskel

Abstract

We document the role of small firms in explaining the growth of the skilled/unskilled wage premium in UK manufacturing over the 1980s. Our major findings are (i) the share of manufacturing employment in small firms' (0–99) employees has risen by 35 percent over this period; (ii) small firms pay more unequal wages than do large firms: the non‐manual/manual wage premium is 1.53 in small firms and 1.50 in firms of over 1,500 workers; (iii) the growth in small firms over the period explains about 20 percent of the rise in the skilled/unskilled wage premium.

Suggested Citation

  • Jonathan Haskel, 1998. "The Skilled Wage Premium and the Growth of Small Firms in UK Manufacturing," LABOUR, CEIS, vol. 12(2), pages 221-238, July.
    • Handle: RePEc:bla:labour:v:12:y:1998:i:2:p:221-238
    DOI: 10.1111/1467-9914.00066
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    Cited by:

    1. Enoch Hill & David Perez-Reyna, 2017. "Managing skill premium through firm structure," Documentos CEDE 15626, Universidad de los Andes, Facultad de Economía, CEDE.

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