Wage differentials by firm size: the efficiency wage test in a developing country

Using data from the Brazilian Labor Monthly Survey (PME/ IBGE) for the years of 2006 and 2007, the paper investigates if the wage differential by firm size in a developing country, such as Brazil, can be explained by the predictions of the Efficiency Wage Theory. It is adopted a Switching Regression...

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Detalles Bibliográficos
Autores: Menezes, Tatiane Almeida de, Raposo, Isabel Pessoa de Araújo
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2014
País:Brasil
Institución:Universidade de São Paulo (USP)
Repositorio:Estudos Econômicos (São Paulo)
Idioma:inglés
OAI Identifier:oai:revistas.usp.br:article/49862
Acceso en línea:https://www.revistas.usp.br/ee/article/view/49862
Access Level:acceso abierto
Palabra clave:efficiency wage
labor effort
firm size
wage differentials
Salário-eficiência
Esforço laboral
Tamanho da firma
Diferenciais de salário
Descripción
Sumario:Using data from the Brazilian Labor Monthly Survey (PME/ IBGE) for the years of 2006 and 2007, the paper investigates if the wage differential by firm size in a developing country, such as Brazil, can be explained by the predictions of the Efficiency Wage Theory. It is adopted a Switching Regression Model to estimate if large size companies pay a higher wage premium for dispended labor effort, as compared to smaller enterprises. The results prove the EW predictions since they evidence positive relationships between wages and labor effort, schooling and longer job duration. However, such findings are not sufficient to explain the existence of wage differentials by firm size in the Brazilian labor market.