Does Firm Size Effect Wages and Labor productivity? -Micro data analysis in case of Japan-

Ai Oku, Shun Inoue and Tsubasa Masui
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Ai Oku: Chief Economist, Policy Research Institute
Shun Inoue: Researcher, Policy Research Institute
Tsubasa Masui: Officer, Policy Research Institute

Discussion papers from Policy Research Institute, Ministry of Finance Japan

Abstract: This paper analyzes the relationship of gfirm size and wages h and gfirm size and labor productivity h by using micro data of Financial Statements Statistics of Corporations by Industry FY2018. We find that 1) in the manufacturing sector, the larger the firm is, the higher the wages and labor productivity are, 2) in the services sector, especially large firms (250 employees or over), the relationship between gfirm size and wages h and gfirm size and labor productivity h is not as strong as that in the manufacturing sector, 3) in both the manufacturing sector and the services sector, wages and labor productivity have a positive correlation.

Keywords: Firm size; wage; labor productivity; Financial Statements Statistics of Corporations by Industry (search for similar items in EconPapers)
JEL-codes: D22 J24 J31 L25 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2020-01
New Economics Papers: this item is included in nep-eff and nep-sbm
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http://www.mof.go.jp/pri/research/discussion_paper/ron320.pdf First version, 2016 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:mof:wpaper:ron320

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