Evidence on the employer size-wage premium from worker-establishment matched data

Article Abstract:

Seven possible explanations for the employer size-wage premium were investigated using the Worker-Establishment Characteristic Database. A number of these hypotheses can account for some of the observed cross-sectional variation in worker wages. However, only two can account for any observed employer size-wage premium. The capital-skill complementary hypothesis accounted for 45% of the firm size-wage premium, while the matching of more-skilled workers together in larger plants accounted for 20% of both the establishment and firm size-wage premia.

Employee Wages & Salaries, Compensation and benefits, Workers

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Wage mobility in the United States

Article Abstract:

A study of the wage mobility and earnings distribution of US citizens from 1971 to 1991 has been conducted. The review, using data from the National Longitudinal Survey of Youth, indicates that wage mobility is primarily mobility within the group. A critical analysis of within-group mobility, using year-to-year estimates of transition probabilities, reveal a substantial decline in wage mobility over time, a development that is especially true for the lower end of the earnings and wage distribution.

Regulation, Licensing, and Inspection of Miscellaneous Commercial Sectors, Wages & Hours Regulation, Labor law, Wage payment systems, Income

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