TY - JOUR
T1 - Employer size-wage effects : evidence from matched employer-employee survey data in the UK
AU - BELFIELD, C. R.
AU - WEI, Xiangdong
PY - 2004/2/20
Y1 - 2004/2/20
N2 - This paper employs a random sample of matched employer - employee data from the UK to test seven possible explanations for the positive relationship between employer size and pay. Individual wage equations show a large employer size wage premium. We then control for a range of establishment-level variables, based on seven hypotheses typically advanced to explain this premium. Each establishment-level factor reduces the wage premium, but a sizeable premium nonetheless remains. In adjudicating on these hypotheses, we find a strong association between the internal labour market and the employer size - wage premium. This finding supports the theory that the employer size - wage effect may be due to the higher costs of turnover or monitoring in larger firms. However, we find contrasting effects for public versus private sector establishments.
AB - This paper employs a random sample of matched employer - employee data from the UK to test seven possible explanations for the positive relationship between employer size and pay. Individual wage equations show a large employer size wage premium. We then control for a range of establishment-level variables, based on seven hypotheses typically advanced to explain this premium. Each establishment-level factor reduces the wage premium, but a sizeable premium nonetheless remains. In adjudicating on these hypotheses, we find a strong association between the internal labour market and the employer size - wage premium. This finding supports the theory that the employer size - wage effect may be due to the higher costs of turnover or monitoring in larger firms. However, we find contrasting effects for public versus private sector establishments.
UR - http://commons.ln.edu.hk/sw_master/2539
U2 - 10.1080/0003684042000175316
DO - 10.1080/0003684042000175316
M3 - Journal Article (refereed)
VL - 36
SP - 185
EP - 193
JO - Applied Financial Economics
JF - Applied Financial Economics
SN - 0003-6846
IS - 3
ER -