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...

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Main Authors: Reed, Tristan, Tran, Trang Thu
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2019
Subjects:
Online Access:http://documents.worldbank.org/curated/en/860561568031792080/The-Large-Firm-Wage-Premium-in-Developing-Economies
http://hdl.handle.net/10986/32371
id okr-10986-32371
recordtype oai_dc
spelling okr-10986-323712022-09-20T00:14:41Z The Large-Firm Wage Premium in Developing Economies Reed, Tristan Tran, Trang Thu WAGE PREMIUM FIRM SIZE WAGE GAP GENDER GAP 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. 2019-09-12T14:29:13Z 2019-09-12T14:29:13Z 2019-09 Working Paper http://documents.worldbank.org/curated/en/860561568031792080/The-Large-Firm-Wage-Premium-in-Developing-Economies http://hdl.handle.net/10986/32371 English Policy Research Working Paper;No. 8997 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic WAGE PREMIUM
FIRM SIZE
WAGE GAP
GENDER GAP
spellingShingle WAGE PREMIUM
FIRM SIZE
WAGE GAP
GENDER GAP
Reed, Tristan
Tran, Trang Thu
The Large-Firm Wage Premium in Developing Economies
relation Policy Research Working Paper;No. 8997
description 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.
format Working Paper
author Reed, Tristan
Tran, Trang Thu
author_facet Reed, Tristan
Tran, Trang Thu
author_sort Reed, Tristan
title The Large-Firm Wage Premium in Developing Economies
title_short The Large-Firm Wage Premium in Developing Economies
title_full The Large-Firm Wage Premium in Developing Economies
title_fullStr The Large-Firm Wage Premium in Developing Economies
title_full_unstemmed The Large-Firm Wage Premium in Developing Economies
title_sort large-firm wage premium in developing economies
publisher World Bank, Washington, DC
publishDate 2019
url http://documents.worldbank.org/curated/en/860561568031792080/The-Large-Firm-Wage-Premium-in-Developing-Economies
http://hdl.handle.net/10986/32371
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