TY - JOUR

T1 - Measuring wage effects of plant size

AU - Albæk, Karsten

AU - Arai, Mahmood

AU - Asplund, Rita

AU - Barth, Erling

AU - Madsen, Erik Strøjer

N1 - JEL Classification: J31

PY - 1998

Y1 - 1998

N2 - There are large plant size–wage effects in the Nordic countries after taking into account individual and job characteristics as well as systematical sorting of the workers into various plant-sizes. The plant size–wage elasticities we obtain are, in contrast to other dimensions of the wage distribution, comparable to the plant-size effects in other countries such as the U.S. with completely different institutions of wage setting. We also investigate the consequence of measurement error associated with the common practice of using midpoints of plant-size classes to estimate the plant size–wage elasticity. Our results indicate that using size–class midpoints yields essentially the same results as using exact measures of plant size

AB - There are large plant size–wage effects in the Nordic countries after taking into account individual and job characteristics as well as systematical sorting of the workers into various plant-sizes. The plant size–wage elasticities we obtain are, in contrast to other dimensions of the wage distribution, comparable to the plant-size effects in other countries such as the U.S. with completely different institutions of wage setting. We also investigate the consequence of measurement error associated with the common practice of using midpoints of plant-size classes to estimate the plant size–wage elasticity. Our results indicate that using size–class midpoints yields essentially the same results as using exact measures of plant size

KW - Faculty of Social Sciences

KW - wage setting institutions

KW - measurement error

KW - sorting

U2 - 10.1016/S0927-5371(98)00008-6

DO - 10.1016/S0927-5371(98)00008-6

M3 - Journal article

VL - 5

SP - 425

EP - 448

JO - Labour Economics

JF - Labour Economics

SN - 0927-5371

IS - 4

ER -