Human Capital and Information: The Employer Size-Wage Effect

Kevin Reilly

Journal of Human Resources, 1995, vol. 30, issue 1, 1-18

Abstract: This paper examines the issue of the establishment size-wage effect. It analyzes a cross-section for the year 1979, with information on 607 individuals and the 60 private sector establishments where they work. It discusses four theories of the establishment size-wage effect and uses empirical proxies to test them. It shows that when a dummy variable on computer access in the establishment is introduced as a regressor, the establishment size variable is an insignificant regressor. This result and other evidence supports the contention that the establishment size coefficient captures the effect of unobserved human capital accumulation.

Date: 1995
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Persistent link: https://EconPapers.repec.org/RePEc:uwp:jhriss:v:30:y:1995:i:1:p:1-18

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