Wage Differentials By Firm Size: The Efficiency Wage Test In A Devoloping Country
Using data from the Brazilian Labor Monthly Survey (PME/ IBGE) for the years of 2006 and 2007, the paper investigates if the wage differential by firm size in Brazil can be explained by the predictions of the Efficiency Wage Theory. It is adopted a Switching Regression Model to estimate if large size companies pay a higher wage premium for dispended labor effort, as compared to smaller enterprises. The results proved the EW predictions. Besides the positive relation between effort and wage differentials by firm size, the results also showed that such wage differences favors larger firms, as compared to smaller ones, because they tend to remunerate better more skilled employees with long term contracts.
|Date of creation:||Sep 2011|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.ersa.org
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Luiz A. Esteves, 2008.
"Salário Eficiência e Esforço de Trabalho: Evidências da Indústria Brasileira de Construção,"
ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics], vol. 9(2), pages 327-341.
- Luiz A. Esteves, 2008. "Salário Eficiência e Esforço de Trabalho: Evidências da Indústria Brasileira de Construção," Working Papers 0080, Universidade Federal do Paraná, Department of Economics.
- David B. Gross & Nicholas S. Souleles, 2002.
"Do Liquidity Constraints And Interest Rates Matter For Consumer Behavior? Evidence From Credit Card Data,"
The Quarterly Journal of Economics,
MIT Press, vol. 117(1), pages 149-185, February.
- David B. Gross & Nicholas S. Souleles, 2001. "Do Liquidity Constraints and Interest Rates Matter for Consumer Behavior? Evidence from Credit Card Data," NBER Working Papers 8314, National Bureau of Economic Research, Inc.
- Akerlof, George A, 1982. "Labor Contracts as Partial Gift Exchange," The Quarterly Journal of Economics, MIT Press, vol. 97(4), pages 543-69, November.
- Booth, Alison L. & Francesconi, Marco & Frank, Jeff, 2000.
"Temporary Jobs: Stepping Stones or Dead Ends?,"
IZA Discussion Papers
205, Institute for the Study of Labor (IZA).
- William T. Dickens, 1986. "Wages, Employment and the Threat of Collective Action by Workers," NBER Working Papers 1856, National Bureau of Economic Research, Inc.
- Oi, Walter Y, 1983. "Heterogeneous Firms and the Organization of Production," Economic Inquiry, Western Economic Association International, vol. 21(2), pages 147-71, April.
- William T. Dickens & Lawrence F. Katz, 1987. "Inter-Industry Wage Differences and Theories of Wage Determination," NBER Working Papers 2271, National Bureau of Economic Research, Inc.
- Solow, Robert M., 1979. "Another possible source of wage stickiness," Journal of Macroeconomics, Elsevier, vol. 1(1), pages 79-82.
- Stiglitz, Joseph E, 1974. "Alternative Theories of Wage Determination and Unemployment in LDC'S: The Labor Turnover Model," The Quarterly Journal of Economics, MIT Press, vol. 88(2), pages 194-227, May.
When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa11p1465. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gunther Maier)
If references are entirely missing, you can add them using this form.