2006–2010

Firm Size or Firm Age? The Effect on Wages Using Matched Employer - Employee Data

Reprint No. 2007:10

Author(s): Fredrik HeymanYear: 2007 Title: LABOUR: Review of Labour Economics and Industrial Relations Volume (No.): 21 (2) Pages: 237–263


This paper uses matched employer–employee data set for Sweden to study the relationship between firm age and wages, systematically addressing a variety of possible explanations for observing a firm age–wage effect. Results show considerable heterogeneity across years, along segments of the firm age distribution and across industries. For 1995, a positive relationship is found between firm age and wages. This relationship is robust to inclusion of variables that might affect results. Taking into account that larger firms are also older firms, results show that inclusion of firm age does not alter the positive effect of firm size on wages.


Reference:
Heyman, Fredrik (2007), "Firm Size or Firm Age? The Effect on Wages Using Matched Employer - Employee Data". LABOUR: Review of Labour Economics and Industrial Relations 21(2), 237–263.

Fredrik Heyman

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Ph: +46 8 665 4537
fredrik.heyman@ifn.se

Interdisciplinary European Studies

The European Union and the Return of the Nation State

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This book explores the complex and ever-changing relationship between the European Union and its member states. The recent surge in tension in this relationship has been prompted by the actions of some member state governments as they question fundamental EU values and principles and refuse to implement common decisions seemingly on the basis of narrowly defined national interests.

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