Scandinavian Working Papers in Economics

Working Paper Series,
Research Institute of Industrial Economics

No 1196: A Cross-Country Comparison of Dynamics in the Large Firm Wage Premium

Emanuele Colonnelli (), Joacim Tåg (), Michael Webb () and Stefanie Wolter ()
Additional contact information
Emanuele Colonnelli: Stanford University
Joacim Tåg: Research Institute of Industrial Economics (IFN), Postal: Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden
Michael Webb: Stanford University
Stefanie Wolter: Institute for Employment Research

Abstract: 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.

Keywords: ynamics; Large Firm Wage Premium

JEL-codes: E24; J01; J31; J33

7 pages, January 19, 2018

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