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TitleEstimating the employer size-wage premium in a panel data model with comparative advantage and non-random selection
Author(s)Cerejeira, João
KeywordsFirm size
Non-random selection
Issue date2004
PublisherUniversidade do Minho. Núcleo de Investigação em Políticas Económicas (NIPE)
Series/Report no.Working paper series / NIPE
Abstract(s)This paper considers the estimation of the employer-size wage e?ect using a panel of employer-employee matched data. We test for the possibility of different returns to observable human capital variables as well as examine the role played by unmeasured skills in driving the allocation of workers across firms of di?erent sizes. Our results show that some of the observed skills; namely, education, age, and tenure have high returns in large firms, while the opposite is true for high skilled occupations and for the gender gap. On the other hand, the price of non-observed skills is reduced as firm size increases. This finding is consistent with explanations based on the premise that large employers have more difficulty monitoring workers, which therefore leads them to monitor less closely.
TypeWorking paper
AccessOpen access
Appears in Collections:NIPE - Documentos de Trabalho

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