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Employer size wage effect: an analysis with panel data from establishments and their workers

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Author(s):
Alessandro Ribeiro de Carvalho Casalecchi
Total Authors: 1
Document type: Master's Dissertation
Press: São Paulo.
Institution: Universidade de São Paulo (USP). Faculdade de Economia, Administração e Contabilidade (FEA/SBD)
Defense date:
Examining board members:
Naercio Aquino Menezes Filho; Ricardo Rezende Gomes Avelino; Andre Portela Fernandes de Souza
Advisor: Naercio Aquino Menezes Filho
Abstract

Economists have persistently found a positive relationship between the employer size and the wage earned by employees. This paper uses an empirical specification that controls for unobserved heterogeneity at three levels: worker, employer and match quality, for the first time in this literature. Thus, theoretical explanations of the employer size effect can be tested with estimation results that are not biased due to omitted variable problems. We show that more than half of the employer size effect is explained by the correlation between the employer size and the three heterogeneities. The results also suggest that we should reject the tested theoretical models as general explanations of the employer size effect. However, these models may explain the effect in some circumstances. (AU)

FAPESP's process: 09/13176-4 - Employer size effect on wages: an analysis using a matched worker-establishment panel data.
Grantee:Alessandro Ribeiro de Carvalho Casalecchi
Support Opportunities: Scholarships in Brazil - Master