Working Paper No. 1196

A Cross-Country Comparison of Dynamics in the Large Firm Wage Premium

Published: January 19, 2018Pages: 7Keywords: Dynamics; Large Firm Wage PremiumJEL-codes: E24; J01; J31; J33

A Cross-Country Comparison of Dynamics in the Large Firm Wage Premium Emanuele Colonnelli, Joacim Tåg, Michael Webb and Stefanie Wolter


We provide stylized facts on the existence and dynamics over time of the large firm wage premium for four countries. We examine matched employer-employee micro-data from Brazil, Germany, Sweden, and the UK, and find that the large firm premium exists in all these countries. However, we uncover substantial differences among them in the evolution of the wage premium over the past several decades. Moreover, we find no clear evidence of common cross-country industry trends. We conclude by discussing potential explanations for this heterogeneity, and proposing some questions for future work in the area.

 

Joacim Tåg

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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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