IDEAS home Printed from https://ideas.repec.org/p/cvs/starer/87-19.html
   My bibliography  Save this paper

Why do Smaller Firms Pay Less?

Author

Listed:
  • Evans, David S.
  • Leighton, Linda S.

Abstract

This paper uses data from the National Longitudinal Survey of Young Men and the Current Population Survey for 1983 to examine the relationships among wages, firm size, and plant size. We reach three key findings. First, plant size has little independent effect on wages once we have controlled for firm size for firms with fewer than 1,000 employees, Second, we find evidence of sorting on observed and unobserved ability characteristics across firm sizes. Better educated and more stable workers are in larger firms. Third, results from a first-difference estimator indicate that about 60 percent of the wage-size effect is due to unobserved heterogeneity when all firms are considered and about 100 percent when firms with 25 or more employees are considered.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Evans, David S. & Leighton, Linda S., 1987. "Why do Smaller Firms Pay Less?," Working Papers 87-19, C.V. Starr Center for Applied Economics, New York University.
  • Handle: RePEc:cvs:starer:87-19
    as

    Download full text from publisher

    File URL: http://econ.as.nyu.edu/docs/IO/9396/RR87-19.pdf
    Download Restriction: no

    Other versions of this item:

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cvs:starer:87-19. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Anne Stubing). General contact details of provider: http://edirc.repec.org/data/aenyuus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.