Does size matter? The influence of firm size on working conditions and job satisfaction
Using a Spanish survey, this paper investigates the relationship between firm size and working conditions, and whether firm size differences in workersâ€™ job satisfaction can be accounted for by differences in their work environment. The results indicate that: (1) workers in larger firms have a significantly lower level of autonomy and, in general, face worse working conditions; (2) working in large firms has no statistically significant effect on job satisfaction after controlling for working conditions; and (3) no systematic differences exist in worker mobility across firm-size categories. We conclude that observed wage differentials by firm size are utility-equalizing, so they are due to differences in working conditions.
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