The formal sector wage premium and firm size

• 成果类型: Article
• 署名作者: El Badaoui, Eliane; Strobl, Eric; Walsh, Frank
• 署名单位: Institut Polytechnique de Paris; Ecole Polytechnique; CY Cergy Paris Universite; University College Dublin
• 刊物名称: JOURNAL OF DEVELOPMENT ECONOMICS
• ISSN/ISSBN: 0304-3878
• DOI: 10.1016/j.jdeveco.2009.03.007
• 发表日期: 2010
• 页码: 37-47
• 关键词: Formal sector wage premium; firm size

摘要

We show theoretically that when larger firms pay higher wages and are more likely to be caught defaulting on labor taxes, then large-high wage firms will be in the formal and small-low wage firms will be in the informal sector. The formal sector wage premium is thus just a firm size wage differential. Using data from Ecuador we illustrate that firm size is indeed the key variable determining whether a formal sector premium exists. (C) 2009 Elsevier B.V. All rights reserved.