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) Size-class differences in wage dispersion often mask even sharper differences in the dispersion of wages generated by … wages worker heterogeneity tends to rise with establishment size production workers are much more homogenous in the union … smaller establishments. 5) The variance in mean wages across establishments accounts for 59% of total variance. Within …
Persistent link: https://www.econbiz.de/10012473474
We consider six explanations for the positive relationship between employer size and wages -- large employers (1) hire … higher quality workers; (2) offer inferior working conditions; (3) make more use of high wages to forestall unionization; (4 …) have more ability to pay high wages; (5) face smaller pools of applicants relative to vacancies; (6) are less able to …
Persistent link: https://www.econbiz.de/10012476184
Do the job-to-job moves of workers contribute to the cyclicality of employment growth at different types of firms? In this paper, we use linked employer-employee data to provide direct evidence on the role of job-to-job flows in job reallocation in the U.S. economy. To guide our analysis, we...
Persistent link: https://www.econbiz.de/10012457432
What determines CEO incentives? A confusion exists among both academics and practitioners about how to measure the strength of CEO incentives, and how to reconcile the enormous differences in pay sensitivities between executives in large and small firms. We show that while one measure of CEO...
Persistent link: https://www.econbiz.de/10012471944
Along with house rents, wages have frequently been described as the "stickiest" prices in the economy, rarely adjusted … more than once a year. Because of this stickiness (which arises from the transactions costs involved in changing wages), a … distinction exists between the adjustment of wages and the size of that adjustment. This distinction has important implications …
Persistent link: https://www.econbiz.de/10012478335
This paper develops a simple equilibrium model of CEO pay. CEOs have different talents and are matched to firms in a competitive assignment model. In market equilibrium, a CEO's pay changes one for one with aggregate firm size, while changing much less with the size of his own firm. The model...
Persistent link: https://www.econbiz.de/10012466300
financially constrained offer an increasing wage profile: They pay lower wages today in exchange of higher wages once they become … unconstrained and operate at a larger scale. In equilibrium, constrained firms are on average smaller and pay lower wages. In this … way the model generates a positive relation between firm size and wages. Using data from the National Longitudinal Survey …
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