Chapter 33 Firm size and wages

摘要: Abstract Jobs differ along many dimensions including firm size. The wage gap due to size of 35% is comparable the gender 36% for men over women and greater than 14% whites black employees. size-wage premium larger varies across industries. It in US other industrialized countries. Large firms demand a higher quality labor defined by such observable characteristics as education, job tenure, fraction full-time workers. Part 3 examines three behavioral explanations. (1) Productive employees are matched with able entrepreneurs minimize sum wages monitoring costs. (2) Big pay efficiency deter shirking. (3) adopt discretionary policy share rents, or Slichter's words, “Wages considerable range reflect managerial discretion. When management can easily afford high wages, they tend do so.” We advance productivity hypothesis. A large organization sets performance standard that raises but has be supported compensating difference. In service industries, pace work depends on customer arrival rate. economies massed reserves generates positive wage-size profile. capital/labor ratio bigger which also early adopting new technologies. Both forces raise skilled where skill often unobservable traits. Production organized around teams calls conformance common rules result paying rents infra-marginal team members. odds survival big enable them “produce” more durable who productive because get training. Firm function external market forces, technology, decisions, luck. surplus revenues costs per employee positively related reasons, lower prices non-labor inputs, possibly power, overhead amortize sunk capital -specific force. Rent sharing cannot dismissed an explanation premium. Taxation regulation affect distribution firms. selection (whose traits not always observable) responsible relation between employer