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Firm Size And Wages In China

Author

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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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    File URL: http://www.buseco.monash.edu.au/units/dru/papers/working-papers-09/09-05firmsizesgaosmyth.pdf
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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.
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    Cited by:

    1. 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.
    2. Vinod Mishra & Russell Smyth, 2011. "Firm-Size and Inter-hierarchy Wage Dispersion in Shanghai," Economics Bulletin, AccessEcon, vol. 31(3), pages 2159-2166.

    More about this item

    Keywords

    wages; firm size; China.;

    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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