The Establishment-Size Wage Premium in Greece

33 Pages Posted: 19 Apr 2010

See all articles by Joan Daouli

Joan Daouli

University of Patras - Department of Economics

Michael Demoussis

University of Patras - Department of Economics

Nicholas Giannakopoulos

University of Patras - Department of Economics

Ioannis Laliotis

University of Surrey

Date Written: April 19, 2010

Abstract

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

Suggested Citation

Daouli, Joan and Demoussis, Michael and Giannakopoulos, Nicholas and Laliotis, Ioannis, The Establishment-Size Wage Premium in Greece (April 19, 2010). Available at SSRN: https://ssrn.com/abstract=1592247 or http://dx.doi.org/10.2139/ssrn.1592247

Joan Daouli

University of Patras - Department of Economics ( email )

Patras GR-265 04
Greece

Michael Demoussis

University of Patras - Department of Economics ( email )

Patras GR-265 04
Greece

HOME PAGE: http://www.geocities.com/michael_demoussis/

Nicholas Giannakopoulos (Contact Author)

University of Patras - Department of Economics ( email )

Rio Patras
Achaia Rio
Patras GR-265 04
Greece

HOME PAGE: http://www.geocities.com/giannakopoulos_nicholas/index

Ioannis Laliotis

University of Surrey ( email )

Guildford
Guildford, Surrey GU2 5XH
United Kingdom

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