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Damir Stijepic
''Small Employers, Large Employers and the Skill Premium''
( 2016, Vol. 36 No.1 )
I document the comovement of the skill premium with the differential employer size wage premium between high- and low-skill workers in U.S. manufacturing during the postwar era. For the baseline specification, i.e., establishments with at least 500 employees categorized as large employers and non-production workers as high-skilled, I obtain a correlation coefficient of 0.87. Exploiting variations across subindustries while controlling for other potentially relevant factors, I estimate that an increase by ten log-points in the differential size premium is associated with an increase in the skill premium by three log-points.
Keywords: skill premium, employer size wage premium, differential employer size wage premium between skill groups, wage inequality
JEL: J3 - Wages, Compensation, and Labor Costs: General
I2 - Education: General
Manuscript Received : Oct 27 2015 Manuscript Accepted : Mar 17 2016

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