A Cross-Country Comparison of Dynamics in the Large Firm Wage Premium

Colonnelli, Emanuele; Tåg, Joacim; Webb, Michael; Wolter, Stefanie

doi:10.1257/pandp.20181067

Cited by 13 publications

(20 citation statements)

References 13 publications

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“…Rather, the distribution of wages in larger firms is shifted to the right compared to the distribution of wages in smaller firms. Our measured large firm wage premium is consistent with the existence of a large, economically significant LFWP found in other studies employing alternative data sets (Velenchik, 1997;Gerlach and Hübler, 1998;Schaffner, 1998;Troske, 1999;Winter-Ebmer, 2001;Dobbelaere, 2004;Söderbom et al, 2005;Lehmer and Möller, 2010;Bloom et al, 2018;Colonnelli et al, 2018;Reed and Thu, 2019;Lochner et al, 2020;Porcher et al, 2021).…”

Section: Introductionsupporting

confidence: 90%

Firm Size and the Task Content of Jobs: Evidence from 47 Countries

Vera

Garcia-Brazales

2021

SSRN Journal

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Using a mix of household-and employer-based survey data from 47 countries, we provide novel evidence that workers in larger firms perform more non-routine analytical and interpersonal tasks, even within narrowly defined occupations. Moreover, workers in larger firms rely more on the use of information and communications technologies (ICT) to perform these tasks. We also document a 17% wage premium that workers in larger firms enjoy relative to their counterparts in smaller firms. We find evidence that the firm size gradient in the task content of jobs accounts for around 10% of the large firm wage premium.

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Section: Introductionsupporting

confidence: 90%

Firm Size and the Task Content of Jobs: Evidence from 47 Countries

Vera

Garcia-Brazales

2021

SSRN Journal

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“…The establishment size effect on earnings proves both important in magnitude and persistent across time and location. The magnitude of the firm size effect has, however, been shown to be declining in the USA for reasons other than changing industrial composition (Bloom et al 2018) but increasing in Germany and Sweden and stable in the UK (Colonnelli et al 2018). More fundamentally, the cause of the size effect (both establishment and firm) has been highly disputed.…”

Section: The Role Of Hierarchy In the Literaturementioning

confidence: 99%

“…2018) but increasing in Germany and Sweden and stable in the UK (Colonnelli et al. 2018). More fundamentally, the cause of the size effect (both establishment and firm) has been highly disputed.…”

Section: The Role Of Hierarchy In the Literaturementioning

confidence: 99%

Hierarchy and the Employer Size Effect on Wages: Evidence from Britain

2021

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We argue that employer size wage effects reflect the role of hierarchy. Using matched employer–employee data and individual longitudinal data, we show that the employer size wage effects for supervisors are approximately twice those for non‐supervisors. We confirm sorting on supervisor ability, and present evidence of additional match‐specific wage returns for supervisors. We demonstrate that spans of control influence the establishment size return for supervisors but not for non‐supervisors. Talented supervisors sort into larger establishments taking a talent premium with them, but they also receive a match‐specific return on that talent only when matched with a larger establishment.

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“…(2007) for five European countries, and Colonnelli et al . (2018) for a comparison across four countries 8 . The reasons for this, however, remain debated.…”

Section: Firm Size and The Gpgmentioning

confidence: 99%

The UK gender pay gap: Does firm size matter?

Jones

Kaya

2023

Economica

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Motivated by the introduction of the UK Gender Pay Gap Reporting legislation to large firms, defined as over 250 employees, we use linked employee–employer panel data from the Annual Survey of Hours and Earnings to explore pre‐legislation variation in the gender pay gap by firm size. In doing so, we contribute to the evidence on the relationship between two prominent empirical regularities in the labour economics literature, namely the gender pay gap and the firm‐size wage premium. We find that both the raw and adjusted gender pay gaps increase with firm size in the UK private sector, even after controlling for unobserved worker heterogeneity, consistent with the legislation being targeted effectively. However, this conclusion changes after accounting for unobserved firm‐level heterogeneity. Large firms have smaller within‐firm raw gender pay gaps and similar adjusted gender pay gaps when compared to smaller firms. Our findings are not specific to the current definition of large firms but hold more generally, including at alternative proposed size thresholds.

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A Cross-Country Comparison of Dynamics in the Large Firm Wage Premium

Cited by 13 publications

References 13 publications

Firm Size and the Task Content of Jobs: Evidence from 47 Countries

Firm Size and the Task Content of Jobs: Evidence from 47 Countries

Hierarchy and the Employer Size Effect on Wages: Evidence from Britain

The UK gender pay gap: Does firm size matter?

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