TY  - RPRT
        AU  - Badaoui, Eliane El
AU  - Strobl, Eric
AU  - Walsh, Frank
        TI  - The Formal Sector Wage Premium and Firm Size
        PY  - 2007/Nov/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 3145
        UR  - https://www.iza.org/index.php/publications/dp3145
        AB  - We show theoretically that when larger firms pay higher wages and are more likely to be caught defaulting on labour taxes, then large high-wage firms will be in the formal sector 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 the South African labour force survey we illustrate that firm size is indeed the key variable determining whether a formal sector premium exists.
        KW  - informal sector
KW  - wage premium
KW  - firm size
        ER  -