Abstract / Description of output
This paper presents estimates for the employer plant size-wage gap for Britain. Using an ordered probit model, selectively-corrected wage equations are estimated for three plant size categories. In a comparison between plants with more than 500 workers and those with less than 100, a wage gap estimate of over 17% is detected. The wage effects of unionization in plants with more than 500 workers is reported as insignificant. In contrast to evidence provided by Idson and Feaster (1990) for the US, no evidence of non-random sorting of workers across plant size is detected. Section 1 details the data-set to be employed in the analysis, paying particular attention to a number of the key variables used, such as employer size and unionization. Section 2 outlines the econometric model that deals with the problem of selectivity bias in the context of an ordinal latent dependent variable. Section 3 provides the empirical estimates, and section 4 offers some conclusions.
Original language | English |
---|---|
Pages (from-to) | 125-142 |
Number of pages | 18 |
Journal | Economica |
Volume | 60 |
Issue number | 238 |
DOIs | |
Publication status | Published - May 1993 |