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Firm Size And Wages In China

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  • Wenshu Gao
  • Russell Smyth

Abstract

While most studies find evidence of a wage-firm size premium, we find that larger firms in China actually pay lower wages. We also find that the most plausible explanation for this result is that larger firms in China employ a higher ratio of blue-collar workers.

Suggested Citation

  • Wenshu Gao & Russell Smyth, 2009. "Firm Size And Wages In China," Development Research Unit Working Paper Series 05-09, Monash University, Department of Economics.
    • Handle: RePEc:mos:druwps:2009-05
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    References listed on IDEAS

    as
    1. Oi, Walter Y. & Idson, Todd L., 1999. "Firm size and wages," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 33, pages 2165-2214, Elsevier.
    2. Clive Belfield & Xiangdong Wei, 2004. "Employer size-wage effects: evidence from matched employer-employee survey data in the UK," Applied Economics, Taylor & Francis Journals, vol. 36(3), pages 185-193.
    3. Moulton, Brent R, 1990. "An Illustration of a Pitfall in Estimating the Effects of Aggregate Variables on Micro Unit," The Review of Economics and Statistics, MIT Press, vol. 72(2), pages 334-338, May.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. 岩﨑, 一郎 & Iwasaki, Ichiro & 馬, 欣欣 & Ma, Xin Xin, 2019. "現代中国における男女賃金格差: メタ分析による接近," Discussion Paper Series 689, Institute of Economic Research, Hitotsubashi University.
    2. Iwasaki, Ichiro & Ma, Xinxin, 2020. "Gender Wage Gap in China: A Large Meta-Analysis," CEI Research Paper Series 2020-5, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    3. MA Xinxin, 2022. "Economic Transition and Wage Gap Between Communist Party Members and Nonmembers in China," Discussion papers 22032, Research Institute of Economy, Trade and Industry (RIETI).
    4. Vinod Mishra & Russell Smyth, 2011. "Firm-Size and Inter-hierarchy Wage Dispersion in Shanghai," Economics Bulletin, AccessEcon, vol. 31(3), pages 2159-2166.
    5. Alessia Amighini & Weidi Fang & Martin Zagler, 2023. "On the evolution of the wage premium for party membership in China," Department of Economics Working Papers wuwp351, Vienna University of Economics and Business, Department of Economics.
    6. Iwasaki, Ichiro & Ma, Xinxin, 2020. "Gender wage gap in China: a large meta-analysis," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 54, pages 1-17.
    7. Vinod Mishra & Russell Smyth, 2014. "Technological Change and Wages in China: Evidence from Matched Employer–Employee Data," Review of Development Economics, Wiley Blackwell, vol. 18(1), pages 123-138, February.
    8. Zagler, Martin & Amighini, Alessia & Fang, Weidi, 2023. "On the evolution of the wage premium for party membership in China," Department of Economics Working Paper Series 351, WU Vienna University of Economics and Business.

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    More about this item

    Keywords

    wages; firm size; China.;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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