The Establishment-Size Wage Premium in Greece
33 Pages Posted: 19 Apr 2010
Date Written: April 19, 2010
In this paper we examine the establishment-size wage premium in Greece using a matched employee-employer dataset. The results of the econometric estimation suggest that indeed such a premium is present in the Greek market sector, too. Its magnitude is in line with those reported in other economies. Human capital, compensating wage differentials/incentive payment schemes and internal labor markets seem to be primarily responsible for the presence of the premium in question. Furthermore, the premium in manufacturing is substantially higher than the one in the services sector, indicating that employers in the former enjoy economics of scale, which eventually lead to higher wages, ceteris paribus. Nevertheless, a sizeable part of the premium remains unexplained.
Keywords: establishment-size, wages, Greece
JEL Classification: J31
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