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Wage differentials across firms: an application of multilevel modelling
Author(s) -
Cardoso A. R.
Publication year - 2000
Publication title -
journal of applied econometrics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.878
H-Index - 99
eISSN - 1099-1255
pISSN - 0883-7252
DOI - 10.1002/1099-1255(200007/08)15:4<343::aid-jae565>3.0.co;2-6
Subject(s) - wage , productivity , economics , labour economics , contrast (vision) , multilevel model , multilevel modelling , demographic economics , economic growth , statistics , artificial intelligence , computer science , mathematics
Multilevel modelling techniques are applied to a dataset that matches firms and workers, to pinpoint and explain contrasts among company wage policies. Results indicate that wage differences across firms are statistically significant, affecting every parameter of the pay policy (returns to schooling, tenure, experience, the penalty imposed on newly hired workers and on women). Gross labour productivity, average schooling in the firm, firm size and economic sector are relevant forces shaping the contrast between employers' pay policies. Copyright © 2000 John Wiley & Sons, Ltd.