A Cross-Country Comparison of Dynamics in the Large Firm Wage Premium

8 Pages Posted: 28 Jan 2018  

Emanuele Colonnelli

Stanford University - Department of Economics

Joacim Tåg

Research Institute of Industrial Economics (IFN)

Michael Webb

Stanford University - Department of Economics

Stefanie Wolter

Government of the Federal Republic of Germany - Institute for Employment Research (IAB)

Date Written: January 2018

Abstract

We provide stylized facts on the existence and dynamics over time of the large firm wage premium for four countries. We examine matched employer-employee micro-data from Brazil, Germany, Sweden, and the UK, and find that the large firm premium exists in all these countries. However, we uncover substantial differences among them in the evolution of the wage premium over the past several decades. Moreover, we find no clear evidence of common cross-country industry trends. We conclude by discussing potential explanations for this heterogeneity, and proposing some questions for future work in the area.

Keywords: Dynamics, Large Firm Wage Premium

JEL Classification: E24, J01, J31, J33

Suggested Citation

Colonnelli, Emanuele and Tåg, Joacim and Webb, Michael and Wolter, Stefanie, A Cross-Country Comparison of Dynamics in the Large Firm Wage Premium (January 2018). IFN Working Paper No. 1196. Available at SSRN: https://ssrn.com/abstract=3105385 or http://dx.doi.org/10.2139/ssrn.3105385

Emanuele Colonnelli

Stanford University - Department of Economics ( email )

Landau Economics Building
579 Serra Mall
STANFORD, CA 94305-6072
United States

Joacim Tåg (Contact Author)

Research Institute of Industrial Economics (IFN) ( email )

Box 55665
Grevgatan 34, 2nd floor
Stockholm, SE-102 15
Sweden

Michael Webb

Stanford University - Department of Economics ( email )

Landau Economics Building
579 Serra Mall
STANFORD, CA 94305-6072
United States

Stefanie Wolter

Government of the Federal Republic of Germany - Institute for Employment Research (IAB) ( email )

Regensburger Str. 104
Nuremberg, 90478
Germany

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