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The Establishment-Size Wage Premium: Evidence from European Countries

  • Lallemand, Thierry

    ()

    (Free University of Brussels)

  • Plasman, Robert

    ()

    (Free University of Brussels)

  • Rycx, Francois

    ()

    (Free University of Brussels)

This study examines the magnitude and determinants of the establishment-size wage premium in five European countries using a unique harmonised matched employer-employee data set. Findings show the existence of a significant positive wage premium in all countries, even when controlling for labour quality, working conditions, monitoring, sectoral and regional effects, bargaining institutions, job stability, and concentration of skilled workers. In cross-national perspective, results support the existence of an inverse relationship between the size wage gap and the degree of corporatism. Final results indicate that the size wage premium is generally larger in the manufacturing sector and for blue-collar workers.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1569.

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Length: 32 pages
Date of creation: Apr 2005
Date of revision:
Publication status: published in: Empirica, 2007, 34 (5), 427-451
Handle: RePEc:iza:izadps:dp1569
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