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Wage Effects of Firm Size: Evidence from Linked Employer-Employee Panel

Author

Listed:
  • Jaakko Pehkonen

    (School of Business and Economics: University of Jyväskylä)

  • Sampo Pehkonen

    (Statistics Finland, Helsinki)

  • Matthias Strifler

    (School of Business and Economics: University of Jyväskylä)

Abstract

This study explores the relationship between wages and firm size using large registered data and different identification strategies. We find that the effect of firm size on wages is negligible when worker and firm characteristics are accounted for. The findings are robust across identification strategies and numerous covariates. The findings are also consistent with the view that coordinated wage-setting systems narrow wage distributions.

Suggested Citation

  • Jaakko Pehkonen & Sampo Pehkonen & Matthias Strifler, 2017. "Wage Effects of Firm Size: Evidence from Linked Employer-Employee Panel," Finnish Economic Papers, Finnish Economic Association, vol. 28(1), pages 1-9, Autumn.
    • Handle: RePEc:fep:journl:v:28:y:2017:i:1:p:1-9
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    References listed on IDEAS

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    1. Sonu Madan, 2019. "Wage Differentials Among Workers: An Empirical Analysis of the Manufacturing and Service Sectors," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 62(4), pages 731-747, December.

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    More about this item

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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