The Employer Size-Wage Effect
We consider six explanations for the positive relationship between employer size and wages -- large employers (1) hire higher quality workers; (2) offer inferior working conditions; (3) make more use of high wages to forestall unionization; (4) have more ability to pay high wages; (5) face smaller pools of applicants relative to vacancies; (6) are less able to monitor their workers. We find some support for the first of these, but there remains a significant wage premium for those working for large employers.
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| Length: | |
| Date of creation: | Mar 1989 |
| Publication status: | published as Journal of Political Economy, Vol. 97, No. 5, pp. 1027-1059, (October 1989) |
| Handle: | RePEc:nbr:nberwo:2870 |
| Note: | LS |
| Contact details of provider: | Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A. Phone: 617-868-3900 Web page: http://www.nber.org Email: More information through EDIRC
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References listed on IDEAS
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- Harry J. Holzer & Lawrence F. Katz & Alan B. Krueger, 1988.
"Job Queues and Wages: New Evidence on the Minimum Wage and Inter-Industry Wage Structure,"
Working Papers
610, Princeton University, Department of Economics, Industrial Relations Section..
- Harry J. Holzer & Lawrence F. Katz & Alan B. Krueger, 1988. "Job Queues and Wages: New Evidence on the Minimum Wage and Inter-Industry Wage Structure," NBER Working Papers 2561, National Bureau of Economic Research, Inc.
- Harry Holzer & Lawrence Katz & Alan Krueger, 1988. "Job Queues and Wages: New Evidence on the Minimum Wage and Inter-Industry Wage Structure," Working Papers 610, Princeton University, Department of Economics, Industrial Relations Section..
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- Richard B. Freeman, 1981. "The Effect of Unionism on Fringe Benefits," ILR Review, Cornell University, ILR School, vol. 34(4), pages 489-509, July.
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- Mellow, Wesley, 1982. "Employer Size and Wages," The Review of Economics and Statistics, MIT Press, vol. 64(3), pages 495-501, August.
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- James E. Pearce, 1985. "Specific training, unions, and the relationship between employer size and wages," Working Papers 8504, Federal Reserve Bank of Dallas.
- Masters, Stanley H, 1969. "An Interindustry Analysis of Wages and Plant Size," The Review of Economics and Statistics, MIT Press, vol. 51(3), pages 341-345, August. Full references (including those not matched with items on IDEAS)
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