Wage Inequality and Establishment Heterogeneity

In Kyung Kim and Jozef Konings
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In Kyung Kim: Nazarbayev University

No 1708, Working Papers from Nazarbayev University, Department of Economics

Abstract: We analyze wage dispersion within and across establishments in Korea between 2007 and 2013. We find that foreign owned establishments and those operating in global markets have higher within establishment wage dispersion. The effect is over and above the establishment size effect. Furthermore, wages are higher in larger establishments and internationally oriented ones. Our findings are consistent with theories explaining management pay and the scope of control. Our results also provide evidence that can explain the rise in wage inequality due to the emergence of ‘super star’ firms and global supply chains.

Keywords: buyer wage inequality; managerial talent; globalization (search for similar items in EconPapers)
JEL-codes: F16 J31 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2017-12, Revised 2017-12
New Economics Papers: this item is included in nep-agr
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Related works:
Journal Article: Wage inequality and establishment heterogeneity (2019)
Working Paper: Wage Inequality and Establishment Heterogeneity (2018)
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