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FIRM SIZE AND WAGES IN ITALY: EVIDENCE FROM EXOGENOUS JOB DISPLACEMENTS

Vincenzo Scoppa

No 201201, Working Papers from Università della Calabria, Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF

Abstract: We use longitudinal data based on administrative archives from 1985 to 2002 to estimate the relationship between wages and firm size for Italy. Controlling for individual fixed effects we find that larger firms pay significantly higher wages, although the individual unmeasured ability component accounts for about one half of the uncovered size-wage premium. To reduce potential self-selection problems arising from endogenous job changes, we focus on a sample of workers displaced by plant closings. Using this sample, we confirm that larger firms pay higher wages in part for unmeasured workers’ abilities and in part for true size effects.

Keywords: Firm Size; Wage Differentials; Panel Data; Exogenous Job Changes (search for similar items in EconPapers)
JEL-codes: J41 J45 M51 (search for similar items in EconPapers)
Pages: 16 pages
Date: 2012-01
New Economics Papers: this item is included in nep-hme, nep-lab and nep-lma
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http://www.ecostat.unical.it/RePEc/WorkingPapers/WP01_2012.pdf First version, 2012-01 (application/pdf)

Related works:
Journal Article: Firm Size and Wages in Italy: Evidence from Exogenous Job Displacements (2014) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:clb:wpaper:201201

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