Abstract
In the past decades, labour economists have accumulated evidence that is at odds with the hypothesis that the labour market is a standard competitive market. Wage regressions show that employer size, that is the number of employees of the firm or establishment, has a positive effect on the wage (Brown and Medoff, 1989), and that there are persistent differences between the wages in different industries (Krueger and Summers, 1988). These effects remain, if an extensive list of controls for productive differences between workers is included in the regression. Moreover, these results have been replicated for many countries.
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Ridder, G., de Visser, N., van den Berg, G. (1998). Structural Aspects of the Labour Markets of Five OECD Countries. In: Brakman, S., van Ees, H., Kuipers, S.K. (eds) Market Behaviour and Macroeconomic Modelling. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-26732-3_8
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DOI: https://doi.org/10.1007/978-1-349-26732-3_8
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