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Does layoff risk explain the firm-size wage differential?

Rudolf Winter-Ebmer

Applied Economics Letters, 1995, vol. 2, issue 7, 211-214

Abstract: If less stable (and also less able) workers select themselves into small, unstable and lowpaying firms, predicted layoff risk of workers can be used as a proxy for heterogeneity of workers and should therefore be included in wage regressions. Doing this, one third of the size earnings premium can be explained.

Date: 1995
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Citations: View citations in EconPapers (8)

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DOI: 10.1080/135048595357285

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