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 Regressio...

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Autores principales:	Tatiane Almeida de Menezes, Isabel Pessoa de Araújo Raposo
Formato:	article
Lenguaje:	EN PT
Publicado:	Universidade de São Paulo 2014
Materias:	efficiency wage labor effort firm size wage differentials Economics as a science HB71-74
Acceso en línea:	https://doaj.org/article/03c58f1bbe1e4758989bd1c3d585bd0b
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spelling	oai:doaj.org-article:03c58f1bbe1e4758989bd1c3d585bd0b2021-11-24T16:03:55ZWage differentials by firm size: the efficiency wage test in a developing country0101-41611980-5357https://doaj.org/article/03c58f1bbe1e4758989bd1c3d585bd0b2014-03-01T00:00:00Zhttps://www.revistas.usp.br/ee/article/view/49862https://doaj.org/toc/0101-4161https://doaj.org/toc/1980-5357 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. Tatiane Almeida de MenezesIsabel Pessoa de Araújo RaposoUniversidade de São Pauloarticleefficiency wagelabor effortfirm sizewage differentialsEconomics as a scienceHB71-74ENPTEstudos Econômicos, Vol 44, Iss 1 (2014)
institution	DOAJ
collection	DOAJ
language	EN PT
topic	efficiency wage labor effort firm size wage differentials Economics as a science HB71-74
spellingShingle	efficiency wage labor effort firm size wage differentials Economics as a science HB71-74 Tatiane Almeida de Menezes Isabel Pessoa de Araújo Raposo Wage differentials by firm size: the efficiency wage test in a developing country
description	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.
format	article
author	Tatiane Almeida de Menezes Isabel Pessoa de Araújo Raposo
author_facet	Tatiane Almeida de Menezes Isabel Pessoa de Araújo Raposo
author_sort	Tatiane Almeida de Menezes
title	Wage differentials by firm size: the efficiency wage test in a developing country
title_short	Wage differentials by firm size: the efficiency wage test in a developing country
title_full	Wage differentials by firm size: the efficiency wage test in a developing country
title_fullStr	Wage differentials by firm size: the efficiency wage test in a developing country
title_full_unstemmed	Wage differentials by firm size: the efficiency wage test in a developing country
title_sort	wage differentials by firm size: the efficiency wage test in a developing country
publisher	Universidade de São Paulo
publishDate	2014
url	https://doaj.org/article/03c58f1bbe1e4758989bd1c3d585bd0b
work_keys_str_mv	AT tatianealmeidademenezes wagedifferentialsbyfirmsizetheefficiencywagetestinadevelopingcountry AT isabelpessoadearaujoraposo wagedifferentialsbyfirmsizetheefficiencywagetestinadevelopingcountry
_version_	1718414853428740096

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

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