0000000000293412
AUTHOR
Matthias Strifler
Profit Sharing the Firm-Size Wage Premium
This study analyzes the relationships among wages, firm size, and profit sharing schemes. We develop a simple theoretical model and explore the relationship empirically using high-quality panel data. The theoretical model shows that the firm-size wage premium decreases in the presence of profit sharing. The empirical results based on rich matched employee-employer data for private sector wage earners in Finland show that the firm-size wage premium is modest, and it becomes negligible when we account for profit sharing and covariates describing assortative matching and monopsony behavior. The analysis suggests that profit sharing schemes embody effects of firm-specific unobservables that rai…
Profit Sharing the Firm-Size Wage Premium
This study analyzes the relationships among wages, firm size, and profit sharing schemes. We develop a simple theoretical model and explore the relationship empirically using high-quality panel data. The theoretical model shows that the firm-size wage premium decreases in the presence of profit sharing. The empirical results based on rich matched employee-employer data for private sector wage earners in Finland show that the firm-size wage premium is modest, and it becomes negligible when we account for profit sharing and covariates describing assortative matching and monopsony behavior. The analysis suggests that profit sharing schemes embody effects of firm-specific unobservables that rai…
Fairness Considerations in Labor Union Wage Setting : A Theoretical Analysis
We consider a theoretical model in which unions not only take the outside option into account, but also base their wage-setting decisions on an internal reference, called the fairness reference. Wage and employment outcomes and the shape of the aggregate wage-setting curve depend on the weight and the size of the fairness reference relative to the outside option. If the fairness reference is relatively high compared to the outside option, higher wages and lower employment than in the standard model will prevail. If hit by an adverse technology shock, the economy will then react with a stronger downward adjustment in employment, whereas real wages are more rigid than in the standard model. W…
Voitonjako : kuka siitä hyötyy, tarjoaako se ratkaisuja taantumassa?
Voitonjako eli erilaiset peruspalkan päälle maksettavat lisäpalkkiot ovat erityisen tyypillisiä suomalaisissa yrityksissä. Tutkimusten mukaan voitonjakokäytännöt tuovat monenlaisia taloudellisia hyötyjä, ja niistä on toivottu jopa vastausta taantuma-aikojen työttömyyteen. Uusin tutkimus ei kuitenkaan tue tätä näkemystä. Tämä artikkeli esittelee voitonjaon käytäntöjä ja sen yhteiskunnallisia seurauksia. nonPeerReviewed
Economics of wage premia and wage rigidity
The focus of this dissertation is on the effects of specific employer characteristics on wages and wage rigidity and how these characteristics enter the wage-setting process. The dissertation includes an introductory chapter and five separate essays. The introduction provides motivation, background on the main keywords and an overview of the thesis. Chapters two and three study how internal references affect wages and wage rigidity from a theoretical perspective. The fourth chapter estimates the effect of firm size on wages in the Finnish labor market. Chapter five develops on the preceding and analyses how profit sharing schemes affect the firm size premium. Chapter six studies how interna…
Wage Effects of Firm Size : Evidence from Linked Employer-Employee Panel
This study explores the relationship between wages and firm size using large registered data and different identification strategies. We found that the effect of firm size on wages is negligible when worker and firm characteristics are accounted for. The findings are robust across identification strategies and numerous covariates. The findings are also consistent with the view that coordinated wage-setting systems narrow wage distributions. peerReviewed