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.
LABOUR: Review of Labour Economics and Industrial Relations
Firm Size or Firm Age? The Effect on Wages Using Matched Employer – Employee Data
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