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Firm-Size and Inter-hierarchy Wage Dispersion in Shanghai


  • Vinod Mishra

    () (Monash University)

  • Russell Smyth

    () (Monash University)


For a sample of Shanghai firms, we find that while larger firms pay lower wages, managers in larger firms still receive higher wages. There are two reasons for this result. The wage gap between managers and non-managers is positively correlated with firm size and larger firms have a lower percentage of middle and high-level managers than small firms.

Suggested Citation

  • Vinod Mishra & Russell Smyth, 2011. "Firm-Size and Inter-hierarchy Wage Dispersion in Shanghai," Economics Bulletin, AccessEcon, vol. 31(3), pages 2159-2166.
  • Handle: RePEc:ebl:ecbull:eb-10-00598

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    References listed on IDEAS

    1. Oi, Walter Y. & Idson, Todd L., 1999. "Firm size and wages," Handbook of Labor Economics,in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 33, pages 2165-2214 Elsevier.
    2. Calvo, Guillermo A & Wellisz, Stanislaw, 1979. "Hierarchy, Ability, and Income Distribution," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 991-1010, October.
    3. Wenshu Gao & Russell Smyth, 2011. "Firm size and wages in China," Applied Economics Letters, Taylor & Francis Journals, vol. 18(4), pages 353-357.
    4. Meagher, Kieron J. & Wilson, Hugh, 2004. "Different firm size effects on wages for supervisors and workers," Economics Letters, Elsevier, vol. 84(2), pages 225-230, August.
    5. Moulton, Brent R, 1990. "An Illustration of a Pitfall in Estimating the Effects of Aggregate Variables on Micro Unit," The Review of Economics and Statistics, MIT Press, vol. 72(2), pages 334-338, May.
    6. Knight, John & Li, Shi, 2005. "Wages, firm profitability and labor market segmentation in urban China," China Economic Review, Elsevier, vol. 16(3), pages 205-228.
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    More about this item


    Firm size; hierarchy; wages;

    JEL classification:

    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs


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