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http://hdl.handle.net/10419/33476
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| Title: | | Establishment size and the dispersion of wages: evidence from European countries  |
| Authors: | | Lallemand, Thierry Rycx, François |
| Issue Date: | | 2005 |
| Series/Report no.: | | IZA Discussion Papers 1778 |
| Abstract: | | 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. |
| Subjects: | | wage structure establishment size decomposition of wages Europe |
| JEL: | | J21 J31 |
| Document Type: | | Working Paper |
| Appears in Collections: | | IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)
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