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Employer Size-wage Effects in Australia


  • C. Jeffrey Waddoups


The study examines rising employer size-wage effects in the Australian labour market between 1993 - a period when the effects of decentralization in wage determination was starting to be felt - and 2001 - after the effects of structural changes had become more fully manifested. The findings indicate that most of the increase in the employer size-wage gap between large and medium-sized employers can be explained by changes in returns to characteristics rather than by changes in the skill mix. In addition changes in labour market structure - perhaps associated with decentralization in wage setting - captured by the intercept coefficients caused the employer size-wage gap to increase for males and decrease for females. Copyright 2007 The Author. Journal compilation CEIS, Fondazione Giacomo Brodolini and Blackwell Publishing Ltd. 2007.

Suggested Citation

  • C. Jeffrey Waddoups, 2007. "Employer Size-wage Effects in Australia," LABOUR, CEIS, vol. 21(4-5), pages 809-835, December.
  • Handle: RePEc:bla:labour:v:21:y:2007:i:4-5:p:809-835

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    References listed on IDEAS

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    Cited by:

    1. Zafar Mueen Nasir & Nasir Iqbal, 2009. "Employers Size Wage Differential: Does Investment in Human Capital Matter?," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 48(4), pages 509-521.
    2. Kristina Nyström & Gulzat Elvung, 2014. "New firms and labor market entrants: Is there a wage penalty for employment in new firms?," Small Business Economics, Springer, vol. 43(2), pages 399-410, August.
    3. Lixin Cai & C. Jeffrey Waddoups, 2009. "The Role of Unobserved Heterogeneity and On-the-Job Training in the Employer Size-Wage Effect: Evidence from Australia," Working Papers 0915, University of Nevada, Las Vegas , Department of Economics.
    4. Nyström, Kristina, 2016. "Entrepreneurship after displacement: The transition and performance of entrepreneurial ventures created after displacement," Working Paper Series in Economics and Institutions of Innovation 443, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.

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