%0 Report
        %A Lallemand, Thierry
%A Rycx, François
        %T Establishment Size and the Dispersion of Wages: Evidence from European Countries
        %D 2005
        %8 2005 Sep
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 1778
        %U https://www.iza.org/publications/dp1778
        %X We investigate how the wage distribution differs among small and large establishments in four European countries. Findings show that within-establishment wage dispersion rises with size because large employers have a more diverse workforce. They also suggest that screening and monitoring costs imply a lower sensitivity of wages to ability in larger establishments. Smaller establishments are found to rely more on incentive-based pay mechanisms, particularly in countries with a low trade union coverage rate. Further results indicate that between-establishment wage dispersion decreases with employer size because smaller establishments are technologically more diversified and hence exhibit greater diversity in average workforce skills.
        %K decomposition of wages
%K establishment size
%K wage structure
%K Europe