The price of unobservables and the employer-size wage premium

This paper estimates the employer-size wage effect on returns to unobservable skills and measured human capital variables using a novel methodology that allows us to estimate a high number of interactions between unobserved effects and firm size. Our results show that in large firms, returns to ability tend to be smaller than in small firms.

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Year of publication:	2012
Authors:	Cerejeira, João ; Guimarães, Paulo
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 117.2012, 3, p. 878-880
Publisher:	Elsevier
Subject:	Firm size \| Wages \| Interacting fixed effects

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Type of publication:	Article
Classification:	D20 - Production and Organizations. General ; J21 - Labor Force and Employment, Size, and Structure ; J24 - Human Capital; Skills; Occupational Choice; Labor Productivity ; J31 - Wage Level and Structure; Wage Differentials by Skill, Training, Occupation, etc
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010594098