Employer Size, Wages and Unobserved Skills: Evidence from Moonlighters in the UK

24 Pages Posted: 13 Oct 2009

See all articles by Alexander Muravyev

Alexander Muravyev

Saint Petersburg Branch National Research University Higher School of Economics; Institute for the Study of Labor (IZA)

Abstract

In this paper we examine the labour quality explanation of the employer size–wage gap: larger firms pay higher wages because they employ more skilled workers. Most previous studies control for unobserved skills of workers by applying the fixed-effects estimator to longitudinal data, thus assuming time-invariant unobserved individual heterogeneity. We release this assumption by using a sample of moonlighters; hence, identification is achieved by differencing across two jobs held simultaneously rather than sequentially. Using the UK Quarterly Labour Force Survey, we find that controlling for unobserved skills in the sample of moonlighters does not reduce the estimate of the wage gap.

Suggested Citation

Muravyev, Alexander, Employer Size, Wages and Unobserved Skills: Evidence from Moonlighters in the UK. The Manchester School, Vol. 77, Issue 6, pp. 651-674, December 2009, Available at SSRN: https://ssrn.com/abstract=1487294 or http://dx.doi.org/10.1111/j.1467-9957.2009.02110.x

Alexander Muravyev (Contact Author)

Saint Petersburg Branch National Research University Higher School of Economics ( email )

Kantemirovskaya str. 3a
St. Petersburg, 194000
Russia

HOME PAGE: http://https://www.hse.ru/en/org/persons/127811036

Institute for the Study of Labor (IZA) ( email )

Schaumburg-Lippe-Str. 5-9
Bonn, D-53113
Germany

HOME PAGE: http://www.iza.org/en/webcontent/index_html

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
4
Abstract Views
191
PlumX Metrics