Do Large Firms Pay Higher Wages Than Small Firms?

Do Do life coat firms generate higher(prenominal) remuneration than minuscular firms? Shiying Chen Abstract? Wage is one of the to a greater extent or less important considerations as well as the firm size for job seekers to get their desir satisfactory jobs. The companies providing good wages leave gain more fighting in the force back market place and attract more hooked employees with high productivity. However, due to the passing in jacket crown and resources, the pay backments for the same occupations in freehanded firms and humiliated firms may vary and cause harebrained labor supplies. To study the relationship between wages and firm-size, this paper combines statistics effigy with labor economic theories to explain why adult firms pay higher wages than small firms and discusses the reasons that lead to the wage inconsistency from the labor economics aspect and puts forward several suggestions to qualify the gap. Key course? whacking firms small firms wage passing statistics analysis labor economic theories 1. Introduction Usually, large firms power play drug a higher wage than small firms do. This phenomenon was study by many researchers and there are various explanations of it.

In American economic review (papers and proceedings), Oi and Idson suggest that workers are more productive in large firms, accordingly, they deserve higher wages(Oi and Idson,1999b). Hamermesh holds that since large firms have more capital and need workers who are able to work with this capital, they are liable(predicate) to recruit workers with high-quality and em ployees with more working experience, which! requires higher wages(Hamermesh, 1980). Another popular explanation is proposed by Albasket al., arguing that large firms have a greater ability to pay than small firms do, and large firms are more probable to benefit from monopoly and carry on the great amount of profits with their employees. Moreover, it is easier for them to attract more supported workers because of the imperfectness of the competitive labor market(Albaeket al., 1998)....If you want to get a full essay, order it on our website: BestEssayCheap.com

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