6533b852fe1ef96bd12ab507
RESEARCH PRODUCT
Small Employers, Large Employers and the Skill Premium
Damir Stijepicsubject
Wage inequalityLabour economicsmedia_common.quotation_subjectWageEconomicsDifferential (mechanical device)Baseline (configuration management)Size premiummedia_commondescription
I document the comovement of the skill premium with the differential employer size wage premium between high- and low-skill workers in U.S. manufacturing during the postwar era. For the baseline specification, i.e., establishments with at least 500 employees categorized as large employers and non-production workers as high-skilled, I obtain a correlation coefficient of 0.87. Exploiting variations across subindustries while controlling for other potentially relevant factors, I estimate that an increase by ten log-points in the differential size premium is associated with an increase in the skill premium by three log-points.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 2015-01-01 | SSRN Electronic Journal |