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- Title
EMPLOYER SIZE AND WAGES.
- Authors
Mellow, Wesley
- Abstract
The article presents new estimates of the employer size wage relation using data from the U.S. Current Population Surveys for May and June 1979. Numerous studies have found that large employers pay higher wages. This study confirms that result. In a major departure from past analyses, however, the data that are analyzed cover the entire work force and provide worker specific information on both plant or establishment size and firm size. The results presented indicate that plant and firm size both have strong positive associations with wages. Interacting plant and firm size with union membership reveals that the union- nonunion relative wage differential is much greater in small firms and/or plants. The results also indicate that the positive association between firm size and wages is found across broad industry groupings and among firms operating in competitive product markets as well as those operating in more concentrated settings. Finally, in a rough attempt at adding health and pension benefits to the wage measure, firm size and union membership have proportionally greater impacts on the expanded measure of compensation than on wages.
- Subjects
UNITED States; BUSINESS size; EMPLOYMENT; EMPLOYERS; INDUSTRIAL relations; WAGES; ECONOMIES of scale; REGRESSION analysis; INDUSTRIAL organization (Economic theory); LABOR supply; LABOR union members; EMPLOYEE benefits
- Publication
Review of Economics & Statistics, 1982, Vol 64, Issue 3, p495
- ISSN
0034-6535
- Publication type
Article
- DOI
10.2307/1925949