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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Persistent link: https://EconPapers.repec.org/RePEc:taf:apeclt:v:2:y:1995:i:7:p:211-214
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DOI: 10.1080/135048595357285
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