Unobserved Heterogeneity, Job Training and the Employer Size-Wage Effect in Australia

This study attempts to clarify the nature of the employer size–wage effect in Australia by determining the extent to which it can be explained by observed and unobserved quality differences of workers. Our empirical results show that, for men, quality‐adjusted employer size–wage effects are quite sm...

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Veröffentlicht in:Australian economic review 2012-06, Vol.45 (2), p.158-175
Hauptverfasser: Cai, Lixin, Jeffrey Waddoups, C.
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Jeffrey Waddoups, C.
description This study attempts to clarify the nature of the employer size–wage effect in Australia by determining the extent to which it can be explained by observed and unobserved quality differences of workers. Our empirical results show that, for men, quality‐adjusted employer size–wage effects are quite small and are mostly driven by lower wages for workers in the smallest firms (fewer than 20 workers). For women, size–wage effects disappear when unobserved quality differences are accounted for. We also find that accounting for differences in the incidence of job training has no effect on the structure of wage differences by employer size.
doi_str_mv 10.1111/j.1467-8462.2012.00680.x
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source Wiley-Blackwell Journals; PAIS Index; Business Source Complete
subjects Accounting
Australia
Australia: Economic conditions
Case studies
Companies
Econometrics
Employees Training
Employers
Gender differences
Household, Income and Labour Dynamics (HILDA) Survey
Men
Sex factors
Skilled labour
Small business
Studies
Training
Vocational education and training
Wage differential
Wage differentials
Wages
Women
Women and employment
Workers
title Unobserved Heterogeneity, Job Training and the Employer Size-Wage Effect in Australia
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