Firm Size and Work Compensation in China

16 Pages Posted: 18 Jan 2016

See all articles by Johanna Karin Rickne

Johanna Karin Rickne

Stockholm University - Swedish Institute for Social Research (SOFI)

Date Written: January-February 2014

Abstract

Remarkably, recent research on the Chinese labor market has suggested that the situation in China is inconsistent with the stylized fact that large firms pay higher wages and offer more generous benefits. Expanding the empirical basis from 78 to 300 000 industrial firms, I overturn the previous result and show that wage determination in the average firm fits the international norm. Exploring subsamples of firms I also point to a likely source for the conflicting findings: firm size is positively correlated with the average wage in private firms, but negatively correlated with the average wage in the state‐owned sector. These novel results could guide future studies aiming to understand the sources of the firm size wage premium, and, in particular, studies that target the largest industrial labor market in the world.

Keywords: China, earnings, firm size, work compensation

JEL Classification: J21, J30, L25

Suggested Citation

Rickne, Johanna Karin, Firm Size and Work Compensation in China (January-February 2014). China & World Economy, Vol. 22, Issue 1, pp. 67-82, 2014, Available at SSRN: https://ssrn.com/abstract=2716491 or http://dx.doi.org/10.1111/j.1749-124X.2014.12053.x

Johanna Karin Rickne (Contact Author)

Stockholm University - Swedish Institute for Social Research (SOFI) ( email )

Kyrkgatan 43B
SE-106 91 Stockholm
Sweden

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
1
Abstract Views
229
PlumX Metrics