The productivity-wage premium Does size still matter in a service economy?

The literature has established two robust stylised facts: (i) the existence of a firm size-wage premium; and (ii) a positive relationship between firm size and productivity. However, the existing evidence is mainly based on manufacturing data only. With manufacturing nowadays accounting for a small...

Full description

Bibliographic Details
Main Author: Berlingieri, Giuseppe
Other Authors: Calligaris, Sara, Criscuolo, Chiara
Format: eBook
Language:English
Published: Paris OECD Publishing 2018
Series:OECD Science, Technology and Industry Working Papers
Subjects:
Online Access:
Collection: OECD Books and Papers - Collection details see MPG.ReNa
LEADER 01953nma a2200277 u 4500
001 EB001842004
003 EBX01000000000000001005993
005 00000000000000.0
007 cr|||||||||||||||||||||
008 180718 ||| eng
100 1 |a Berlingieri, Giuseppe 
245 0 0 |a The productivity-wage premium  |h Elektronische Ressource  |b Does size still matter in a service economy?  |c Giuseppe, Berlingieri, Sara, Calligaris and Chiara, Criscuolo 
260 |a Paris  |b OECD Publishing  |c 2018 
300 |a 33 p 
653 |a Industry and Services 
653 |a Science and Technology 
700 1 |a Calligaris, Sara 
700 1 |a Criscuolo, Chiara 
041 0 7 |a eng  |2 ISO 639-2 
989 |b OECD  |a OECD Books and Papers 
490 0 |a OECD Science, Technology and Industry Working Papers 
028 5 0 |a 10.1787/04e36c29-en 
856 4 0 |a oecd-ilibrary.org  |u https://doi.org/10.1787/04e36c29-en  |x Verlag  |3 Volltext 
082 0 |a 600 
082 0 |a 330 
520 |a The literature has established two robust stylised facts: (i) the existence of a firm size-wage premium; and (ii) a positive relationship between firm size and productivity. However, the existing evidence is mainly based on manufacturing data only. With manufacturing nowadays accounting for a small share of the economy, whether productivity, size, and wages are closely linked, and how tight this link is across sectors, is still an open question. Using a unique micro-aggregated dataset covering the whole economy in 17 countries over 1994-2012, this paper compares these relationships across sectors. While the size-wage and size-productivity premia are significantly weaker in market services compared to manufacturing, the link between wages and productivity is stronger. The combination of these results suggests that, in a service economy the "size-wage premium" becomes more a "productivity-wage premium". These results have first-order policy implications for both workers and firms