Why are Small Firms Different? Managers' Views

Posted: 9 Nov 2009

See all articles by Jonas Agell

Jonas Agell

Stockholm University - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute)

Multiple version iconThere are 3 versions of this paper

Date Written: 2004

Abstract

Previous research indicates that, on average, large employers tend to provide their employees with higher wages as compared to their smaller counterparts.To better understand the reasoning behind this trend, the size effects in pay policy were examined.Questionnaires were distributed in March 1999, with 885 Swedish establishments included in the final sample.Background information on the businesses and the employees was provided by the business register of Statistics Sweden; by survey questions relating to union density, pay systems, and employment contracts; and by the tax and education registers of Statistic Sweden. Econometric analysis was used to analyze the data sets. Findings indicate the following:the use of performance pay and the importance of the career ladder were more prevalent in larger firms; larger firms tended to have more skewed earning distributions; peer pressure and work norms were more important in disciplinary actions in smaller firms; and large firm employees were more attentive to wage relativities than small firm employees.Details of thefindings are provided as well as the implications associated with them. (AKP)

Keywords: Experimental/primary research, Incentive pay, Motivation, Firm size, Wages & salaries, Incentive plans, Performance evaluation

Suggested Citation

Agell, Jonas, Why are Small Firms Different? Managers' Views (2004). University of Illinois at Urbana-Champaign's Academy for Entrepreneurial Leadership Historical Research Reference in Entrepreneurship, Available at SSRN: https://ssrn.com/abstract=1500921

Jonas Agell (Contact Author)

Stockholm University - Department of Economics ( email )

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Sweden

CESifo (Center for Economic Studies and Ifo Institute)

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Munich, DE-81679
Germany

HOME PAGE: http://www.CESifo.de

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