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

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

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Abstract

We provide stylized facts on the existence and dynamics over time of the large firm wage premium for four countries. We examine matched employer-employee micro-data from Brazil, Germany, Sweden, and the UK, and find that the large firm premium exists in all these countries. However, we uncover substantial differences among them in the evolution of the wage premium over the past several decades. Moreover, we find no clear evidence of common cross-country industry trends. We conclude by discussing potential explanations for this heterogeneity, and proposing some questions for future work in the area.

Citation

Colonnelli, Emanuele, Joacim Tåg, Michael Webb, and Stefanie Wolter. 2018. "A Cross-Country Comparison of Dynamics in the Large Firm Wage Premium." AEA Papers and Proceedings, 108: 323-27. DOI: 10.1257/pandp.20181067

Additional Materials

JEL Classification

  • D22 Firm Behavior: Empirical Analysis
  • J31 Wage Level and Structure; Wage Differentials
  • L25 Firm Performance: Size, Diversification, and Scope
  • O14 Industrialization; Manufacturing and Service Industries; Choice of Technology
  • O15 Economic Development: Human Resources; Human Development; Income Distribution; Migration