Effort Level by Firm Size in a Developing Country

Paulo Monte

The Indian Journal of Labour Economics, 2019, vol. 62, issue 1, No 5, 73-87

Abstract: Abstract This paper compares effort levels of workers from small and medium/large firms. Generally, smaller firms pay lower wages, have higher turnover rate and offer less employment protection, aspects that can influence work effort. Therefore, through a data panel on the Brazilian labor market from 2005 to 2015, different econometric models (RE probit model and Mundlak–Chamberlain model) and using two proxies (sub-remuneration and absence) for measurement, we analyzed whether workers of small firms demonstrate higher working effort than workers of medium/large firms and whether such differences remained after job switch among firms. Results indicate that: (1) workers of small firms are more dedicated to work; (2) workers who switched jobs from a small to a medium/large firm experienced change in behavior, for variable sub-remuneration; (3) switching jobs did not alter working effort for variable absence, as workers remained on a superior level to those employed in small/large firms throughout the research.

Keywords: Labor market; Effort; Small firms; Large firms; Panel econometrics (search for similar items in EconPapers)
JEL-codes: D21 J24 J53 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://link.springer.com/10.1007/s41027-019-00161-0 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:ijlaec:v:62:y:2019:i:1:d:10.1007_s41027-019-00161-0

Ordering information: This journal article can be ordered from
http://www.springer.com/journal/41027

DOI: 10.1007/s41027-019-00161-0

Access Statistics for this article

The Indian Journal of Labour Economics is currently edited by Alakh Sharma

More articles in The Indian Journal of Labour Economics from Springer, The Indian Society of Labour Economics (ISLE) Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().