Establishment size and the dispersion of wages: evidence from European countries
We investigate how the wage distribution differs among small and large establishments in four European countries. Findings show that within-establishment wage dispersion rises with size because large employers have a more diverse workforce. They also suggest that screening and monitoring costs imply a lower sensitivity of wages to ability in larger establishments. Smaller establishments are found to rely more on incentive-based pay mechanisms, particularly in countries with a low trade union coverage rate. Further results indicate that between-establishment wage dispersion decreases with emplo... Mehr ...
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Dokumenttyp: | doc-type:workingPaper |
Erscheinungsdatum: | 2005 |
Verlag/Hrsg.: |
Bonn: Institute for the Study of Labor (IZA)
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Schlagwörter: | ddc:330 / J21 / J31 / wage structure / establishment size / decomposition of wages / Europe / Lohnstruktur / Betriebsgröße / Schätzung / Belgien / Irland / Italien / Spanien |
Sprache: | Englisch |
Permalink: | https://search.fid-benelux.de/Record/base-28510689 |
Datenquelle: | BASE; Originalkatalog |
Powered By: | BASE |
Link(s) : | http://hdl.handle.net/10419/33476 |
We investigate how the wage distribution differs among small and large establishments in four European countries. Findings show that within-establishment wage dispersion rises with size because large employers have a more diverse workforce. They also suggest that screening and monitoring costs imply a lower sensitivity of wages to ability in larger establishments. Smaller establishments are found to rely more on incentive-based pay mechanisms, particularly in countries with a low trade union coverage rate. Further results indicate that between-establishment wage dispersion decreases with employer size because smaller establishments are technologically more diversified and hence exhibit greater diversity in average workforce skills.