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Firm Size And Wages In Italy: Evidence From Exogenous Job Displacements

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  • Vincenzo Scoppa

    () (Dipartimento di Economia e Statistica, Università della Calabria)

Abstract

We use longitudinal data based on administrative archives from 1985 to 2002 to estimate the relationship between wages and firm size for Italy. Controlling for individual fixed effects we find that larger firms pay significantly higher wages, although the individual unmeasured ability component accounts for about one half of the uncovered size-wage premium. To reduce potential self-selection problems arising from endogenous job changes, we focus on a sample of workers displaced by plant closings. Using this sample, we confirm that larger firms pay higher wages in part for unmeasured workers’ abilities and in part for true size effects.

Suggested Citation

  • Vincenzo Scoppa, 2012. "Firm Size And Wages In Italy: Evidence From Exogenous Job Displacements," Working Papers 201201, Università della Calabria, Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF.
  • Handle: RePEc:clb:wpaper:201201
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    Cited by:

    1. Devicienti, Francesco & Fanfani, Bernardo & Maida, Agata, 2016. "Collective Bargaining and the Evolution of Wage Inequality in Italy," IZA Discussion Papers 10293, Institute for the Study of Labor (IZA).
    2. repec:bla:labour:v:31:y:2017:i:2:p:153-173 is not listed on IDEAS
    3. repec:fep:journl:v:28:y:2017:i:1:p:1-9 is not listed on IDEAS

    More about this item

    Keywords

    Firm Size; Wage Differentials; Panel Data; Exogenous Job Changes;

    JEL classification:

    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets

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