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Wage Inequality and Establishment Heterogeneity

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  • Konings, Jozef
  • Kim, In

Abstract

We analyze wage dispersion within and across establishments in Korea between 2007 and 2013. We find that foreign owned establishments and those operating in global markets have higher within establishment wage dispersion. The effect is over and above the establishment size effect. Furthermore, wages are higher in larger establishments and internationally oriented ones. Our findings are consistent with theories explaining management pay and the scope of control. Our results also provide evidence that can explain the rise in wage inequality due to the emergence of "super star" firms and global supply chains.

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  • Konings, Jozef & Kim, In, 2018. "Wage Inequality and Establishment Heterogeneity," CEPR Discussion Papers 12698, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:12698
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    Cited by:

    1. Dinara Alpysbayeva & Jozef Konings & Venkat Subramanian & Aigerim Yergabulova, 2022. "Wage dispersion and firm performance: evidence from Kazakhstan," Working Papers 2022/01, Nazarbayev University, Graduate School of Business.
    2. Boddin, Dominik & Kroeger, Thilo, 2022. "Servitization, Inequality, and Wages," Labour Economics, Elsevier, vol. 77(C).

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    More about this item

    Keywords

    Wage inequality; Managerial talent; Globalization;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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