Is Bigger Still Better? The Decline of the Wage Premium at Large Firms

William Even () and David Macpherson

No 4082, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This study shows that the wage premium paid by large firms fell over the past 20 years and that the decline in the size premium has been most pronounced among the least educated work force. Empirical evidence supports several explanations for the decline in the size premium. First, there has been a convergence in the returns to worker characteristics at large and small firms over time. Second, there has been a convergence in the types of workers employed at small and large firms. Particularly important have been changes in the distribution of workers across industries and the greater rate of decline in unionism at large firms.

Keywords: firm size; fringe benefits; wages (search for similar items in EconPapers)
JEL-codes: J31 J32 J33 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2009-03
New Economics Papers: this item is included in nep-bec, nep-lab and nep-ltv
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published - published in: Southern Economic Journal, 2012, 78(4), 1181-1201

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