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Firm age and wage determination: evidence from matched employer–employee data in Japan

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  • Hiroko Okajima
  • Kazufumi Yugami
  • Atsushi Morimoto
  • Shigeharu Okajima
  • Kenta Nakamura

Abstract

Firm age, a new factor underlying wage differentials, has been analysed in the emerging literature using matched employer–employee data, though its effect on wages remains inconclusive. This study adds to the literature by providing insights into different wage determinants between industries. We find firm age has a negative effect on wages and a positive effect on a slope of the wage–tenure profile, particularly in non-manufacturing industries. The industrial difference may be explained by the difference in firms’ survival rates and expectations on long-term training.

Suggested Citation

  • Hiroko Okajima & Kazufumi Yugami & Atsushi Morimoto & Shigeharu Okajima & Kenta Nakamura, 2021. "Firm age and wage determination: evidence from matched employer–employee data in Japan," Applied Economics Letters, Taylor & Francis Journals, vol. 28(2), pages 133-136, January.
    • Handle: RePEc:taf:apeclt:v:28:y:2021:i:2:p:133-136
    DOI: 10.1080/13504851.2020.1738324
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