Arbeitspapier
The Importance of Firms in Wage Determination
Firms are central to many theories of the labor market. However, the extent to which firms affect wages has only recently been explored using matched employer-employee data. This paper investigates (i) the importance of firms in explaining wage differences across individuals and industries, and (ii) how the nature of interfirm mobility – job-to-job vs. jobunemployment- job – affects the relative importance of firms and workers in wage determination. Results indicate that (i) firms are much more important in explaining the variance of average wages across industries rather than individuals, and (ii) using job-to-job transitions reduces the importance of firm wage policies in explaining differences.
- Language
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Englisch
- Bibliographic citation
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Series: IZA Discussion Papers ; No. 1367
- Classification
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Wirtschaft
Wage Level and Structure; Wage Differentials
Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models
- Subject
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interfirm mobility
wage determination
industry wage differentials
matched employer employee data
Lohnbildung
Vergütungssystem
Lohnstruktur
Arbeitsmobilität
Schätzung
Österreich
- Event
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Geistige Schöpfung
- (who)
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Gruetter, Max
Lalive, Rafael
- Event
-
Veröffentlichung
- (who)
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Institute for the Study of Labor (IZA)
- (where)
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Bonn
- (when)
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2004
- Handle
- Last update
-
10.03.2025, 11:45 AM CET
Data provider
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Object type
- Arbeitspapier
Associated
- Gruetter, Max
- Lalive, Rafael
- Institute for the Study of Labor (IZA)
Time of origin
- 2004