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Title: Why Do Smaller Firms Pay Less?
Resulting in 1 citation.
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Evans, David S. Leighton, Linda S. |
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Why Do Smaller Firms Pay Less? Journal of Human Resources 24,2 (Spring 1989): 299-318. Also: http://www.jstor.org/stable/145858 Cohort(s): Young Men Publisher: University of Wisconsin Press Keyword(s): Current Population Survey (CPS) / CPS-Fertility Supplement; Education; Firm Size; Firms; Heterogeneity; Job Tenure; Job Turnover; Wages This paper uses data from the NLS of Young Men and the Current Population Survey for 1983 to examine the relationships among wages, firm size, and plant size. Results indicate that: (1) plant size has little independent effect on wages once the firm size of firms with fewer than 1,000 employees is controlled for; (2) evidence of sorting on observed and unobserved ability characteristics across firm sizes was found. Better educated and more stable workers are in larger firms; and (3) results from a first-difference estimator indicate that about 60 percent of the wage-size effect is due to unobserved heterogeneity when all firms are considered and about 100 percent when firms with 25 or more employees are considered. |
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Bibliography Citation
Evans, David S. and Linda S. Leighton. "Why Do Smaller Firms Pay Less?" Journal of Human Resources 24,2 (Spring 1989): 299-318.
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