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Wage differentials across firms: an application of multilevel modelling

  • A. R. Cardoso

    (Minho University, Braga, Portugal, NIMA and CEPR)

Multilevel modelling techniques are applied to a dataset that matches firms and workers, to pinpoint and explain contrasts among company wage policies. Results indicate that wage differences across firms are statistically significant, affecting every parameter of the pay policy (returns to schooling, tenure, experience, the penalty imposed on newly hired workers and on women). Gross labour productivity, average schooling in the firm, firm size and economic sector are relevant forces shaping the contrast between employers' pay policies. Copyright © 2000 John Wiley & Sons, Ltd.

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File URL: http://qed.econ.queensu.ca:80/jae/2000-v15.4/
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Article provided by John Wiley & Sons, Ltd. in its journal Journal of Applied Econometrics.

Volume (Year): 15 (2000)
Issue (Month): 4 ()
Pages: 343-354

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Handle: RePEc:jae:japmet:v:15:y:2000:i:4:p:343-354
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  1. Groshen, Erica L, 1991. "Sources of Intra-industry Wage Dispersion: How Much Do Employers Matter?," The Quarterly Journal of Economics, MIT Press, vol. 106(3), pages 869-84, August.
  2. 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.
  3. Currie, Janet & McConnell, Sheena, 1992. "Firm-Specific Determinants of the Real Wage," The Review of Economics and Statistics, MIT Press, vol. 74(2), pages 297-304, May.
  4. A. W. Coats, 1996. "Introduction," History of Political Economy, Duke University Press, vol. 28(5), pages 3-11, Supplemen.
  5. Knight, J B & Sabot, R H, 1983. "The Role of the Firm in Wage Determination: An African Case Study," Oxford Economic Papers, Oxford University Press, vol. 35(1), pages 45-66, March.
  6. Kremer, Michael, 1993. "The O-Ring Theory of Economic Development," The Quarterly Journal of Economics, MIT Press, vol. 108(3), pages 551-75, August.
  7. William Gould & William Rogers, 1992. "Summary of Tests of Normality," Stata Technical Bulletin, StataCorp LP, vol. 1(3).
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