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Firm Size Wage Differentials in Switzerland: Evidence from Job Changers


  • Rudolf Winter-Ebmer
  • Josef Zweimueller


Using information on job changes and search behavior of workers and controlling for endogenous mobility we study firm-size wage differentials in Switzerland. We find that the observed cross-sectional firm size premium cannot be explained exclusively by worker heterogeneity. Almost 50 % of the cross-section differential is a firm-size effect.

Suggested Citation

  • Rudolf Winter-Ebmer & Josef Zweimueller, "undated". "Firm Size Wage Differentials in Switzerland: Evidence from Job Changers," IEW - Working Papers 001, Institute for Empirical Research in Economics - University of Zurich.
  • Handle: RePEc:zur:iewwpx:001

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    References listed on IDEAS

    1. John M. Abowd & Francis Kramarz & David N. Margolis, 1999. "High Wage Workers and High Wage Firms," Econometrica, Econometric Society, vol. 67(2), pages 251-334, March.
    2. Leonard, J.S. & Van Audenrode, M., 1996. "Persistence of Firm and Individual Wage Components," Papers 9607, Laval - Recherche en Politique Economique.
    3. Brown, Charles & Medoff, James, 1989. "The Employer Size-Wage Effect," Journal of Political Economy, University of Chicago Press, vol. 97(5), pages 1027-1059, October.
    4. Robert Gibbons & Lawrence Katz, 1992. "Does Unmeasured Ability Explain Inter-Industry Wage Differentials?," Review of Economic Studies, Oxford University Press, vol. 59(3), pages 515-535.
    5. Krueger, Alan B & Summers, Lawrence H, 1988. "Efficiency Wages and the Inter-industry Wage Structure," Econometrica, Econometric Society, vol. 56(2), pages 259-293, March.
    6. Hamermesh, Daniel S., 1999. "LEEping into the future of labor economics: the research potential of linking employer and employee data," Labour Economics, Elsevier, vol. 6(1), pages 25-41, March.
    7. Albaek, Karsten & Arai, Mahmood & Asplund, Rita, 1995. "Employer Size-Effectsin the Nordic Countries," Discussion Papers 532, The Research Institute of the Finnish Economy.
    8. Solon, Gary, 1988. "Self-selection bias in longitudinal estimation of wage gaps," Economics Letters, Elsevier, vol. 28(3), pages 285-290.
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    More about this item


    Wage Differentials; Job Mobility; Firm Size;

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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