The Large-Firm Wage Premium in Developing Economies
Large firms pay higher wages. In developing economies, the large-firm wage premium is comparable to the average gap between male and female wages, or two-thirds of the gap between urban and rural wages. There is substantial variation across countri...
| Main Authors: | , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2019
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/860561568031792080/The-Large-Firm-Wage-Premium-in-Developing-Economies http://hdl.handle.net/10986/32371 |
| Summary: | Large firms pay higher wages. In
developing economies, the large-firm wage premium is
comparable to the average gap between male and female wages,
or two-thirds of the gap between urban and rural wages.
There is substantial variation across countries in the share
of the premium that is explained by sorting of human capital
into large firms. The average large-firm wage premium
declines in national income and has declined over time.
Across industries, it is highest in public utilities and
commerce. These stylized facts suggest several hypotheses
about differences between labor markets in developing and
advanced economies. |
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