Work Characteristics, Firm Size and Wages

Christoph Schmidt and Klaus Zimmerman
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Klaus Zimmerman: University of Munich

No 644, Working Papers from Princeton University, Department of Economics, Industrial Relations Section.

Abstract: A positive wage-firm size relationship is well documented in the empirical literature in industrial organization and labor economics. Firm size seems to proxy various unobserved determinants such as job satisfaction, monitoring costs, more complex technologies and worker participation in monopoly profits. It is generally argued that, the greater the possibility of controlling for these latent factors, the less likely that a significant size effect will appear. This paper attempts to distinguish firm size from other wage determinants for a rich data source for West Germany and demonstrates the persistence of the size premium.

Keywords: firm size-wage differentials; earnings functions; compulsory wage differentials; work characteristics (search for similar items in EconPapers)
JEL-codes: H19 (search for similar items in EconPapers)
Date: 1990-05
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Citations: View citations in EconPapers (9)

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Journal Article: Work Characteristics, Firm Size and Wages (1991)
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Persistent link: https://EconPapers.repec.org/RePEc:pri:indrel:264

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