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The Structure of Wages by Firm Size: A Comparison of Canada and the USA

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  • Stéphanie Lluis

Abstract

Cross‐country comparisons of the skill premium between USA and Canada show differences in the returns to higher education between the two countries since the 1980s. This paper analyses whether such differences could be related to differences in skill distribution and worker sorting across firm size between the two countries. Estimation of the wage structure by size for male non‐unionized workers in the private sector reveals that selectivity effects on wages are present and similar in both countries. There are significant and substantial cross‐country differences in the returns to education among large firms, especially for younger workers.

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  • Stéphanie Lluis, 2009. "The Structure of Wages by Firm Size: A Comparison of Canada and the USA," LABOUR, CEIS, vol. 23(2), pages 283-317, June.
    • Handle: RePEc:bla:labour:v:23:y:2009:i:2:p:283-317
    DOI: 10.1111/j.1467-9914.2009.00450.x
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    References listed on IDEAS

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    3. Sang-yoon Song, 2020. "Employer Size and Wage Inequality: Rent-Sharing Role of Performance Pay," Korean Economic Review, Korean Economic Association, vol. 36, pages 415-444.
    4. Antonelli, Cristiano & Scellato, Giuseppe, 2019. "Wage inequality and directed technological change: Implications for income distribution," Technological Forecasting and Social Change, Elsevier, vol. 141(C), pages 59-65.

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