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Wage Effects of Firm Size: Evidence from Linked Employer-Employee Panel

Jaakko Pehkonen (), Sampo Pehkonen and Matthias Strifler
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Jaakko Pehkonen: School of Business and Economics: University of Jyväskylä
Sampo Pehkonen: Statistics Finland, Helsinki
Matthias Strifler: School of Business and Economics: University of Jyväskylä

Finnish Economic Papers, 2017, vol. 28, issue 1, 1-9

Abstract: This study explores the relationship between wages and firm size using large registered data and different identification strategies. We find that the effect of firm size on wages is negligible when worker and firm characteristics are accounted for. The findings are robust across identification strategies and numerous covariates. The findings are also consistent with the view that coordinated wage-setting systems narrow wage distributions.

JEL-codes: J31 (search for similar items in EconPapers)
Date: 2017
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