Firm Size-Wage Premiums: Using Employer Data to Unravel the Mystery

Pedace, Roberto

doi:10.2753/jei0021-3624440108

Cited by 15 publications

(11 citation statements)

References 25 publications

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“…The finding that on-the-job sacrifice was negatively related to turnover intentions is somewhat surprising. It is well established in the literature that SME employees generally sacrifice fewer tangible benefits when leaving their employer (e.g., Cardon and Stevens, 2004;Dawe and Nguyen, 2007;Forth et al, 2006;Pedace, 2010). However, the finding of this study in relation to on-the-job sacrifice is congruent with the findings of several other studies that focus on employees' experiences of working in smaller firms.…”

Section: Theoretical and Empirical Contributionssupporting

confidence: 85%

Does job embeddedness predict turnover intentions in SMEs?

Coetzer

Inma

Poisat

et al. 2019

IJPPM

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Purpose There is an absence of research examining job embeddedness in SMEs. Results of job embeddedness studies may not apply to SMEs, because the process of managing a SME differs from that of the large firm. The purpose of this paper is to examine relationships between on-the-job embeddedness, as well as each of its sub-dimensions, and turnover intentions; and group cohesion, on-the-job embeddedness and turnover intentions. Design/methodology/approach Data were collected from 147 employees in SMEs located in Perth, Western Australia and 350 employees from SMEs operating in four business centres in South Africa. After invariance testing, data from the two countries were combined to increase statistical power of the analysis. Findings On-the-job embeddedness and each sub-dimension were negatively related to turnover intentions. Group cohesion was positively related to composite on-the-job embeddedness. Findings suggest that while group cohesion on its own does not reduce turnover intentions, it does contribute to development of on-the-job embeddedness that, in turn, reduces turnover intentions. Research limitations/implications Future research should control for the effects of external influences on turnover intentions. Findings imply that managerial actions related to antecedents of group cohesion could foster the on-the-job embeddedness of employees. Originality/value This study is perhaps the first that tests the operation of on-the-job embeddedness in SMEs located in two countries. The conceptual arguments for links between each of the sub-dimensions of on-the-job embeddedness and turnover intentions are based on distinctive characteristics of SMEs and can serve as a theoretical foundation for future research on embeddedness in SMEs.

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Section: Theoretical and Empirical Contributionssupporting

confidence: 85%

Does job embeddedness predict turnover intentions in SMEs?

Coetzer

Inma

Poisat

et al. 2019

IJPPM

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“…In der Personalökonomik ist eine klassische betriebsspezifische Variable die Unternehmensgröße. Je größer das Unternehmen, desto höher ist ceteris paribus typischerweise das Gehalt (Lehmer & Möller, 2010;Pedace, 2010;Even & Macpherson, 2012); selbstverständlich werden auch Branchenunterschiede als betriebsspezifische Variablen berücksichtigt (Achatz et al, 2004;Holst & Busch, 2008b;Holst & Busch, 2009). Seit etwa 20 Jahren werden für wissenschaftliche Arbeiten auf dieser Basis verstärkt so genannte Linked Employer Employee Datensätze (LEED) herangezogen (Baker & Holmstrom, 1995;Hafner & Lenz, 2007;Lazear & Shaw, 2007).…”

Section: Theorie Und Literaturlageunclassified

“…Sowohl die Branche als auch die Unternehmensgröße und die Anzahl der geführten Mitarbeiter haben einen signifikanten Einfluss auf das Gehalt, was einschlägige personalökonomische Untersuchungen bestätigt (Lehmer & Möller, 2010;Pedace, 2010;Even & Macpherson, 2012). Interessant ist jedoch, dass der Effekt der Tätigkeitsauffassung jeden Brancheneffekt übertrifft und in seinem Ausmaß etwa dem Gehaltsunterschied zwischen oberem Mittelstand und Großkonzern entspricht sowie dem Gehaltsunterschied, der aus einer knappen Verdreifachung der geführten Mitarbeiter oder der erworbenen Berufserfahrung resultiert.…”

Section: Ergebnisseunclassified

Strategische Orientierung und Gehaltsstrukturen von Personalleitenden

Armbrüster¹,

Schüller²

2014

German Journal of Human Resource Management

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“…A number of empirical works use matched employer-employee data sets (Schmidt and Zimmermann, 1991;Albeak et al, 1998;Troske, 1999;Arai, 2003;Lallemand et al, 2007;Pedace, 2010) to try to explain the firm sizewage differential by relating it to a number of employer characteristics: physical capital intensity (to test whether skill-capital complementarity is relevant), profits (with regard the rent sharing hypothesis), working conditions (to verify whether firms pay compensating wage differentials), monitoring (testing efficiency wage theories), workforce skills, unionization and so on. Typically, these studies find that physical capital, profits and skill complementarity are important determinants of wage differentials, although a large part of the differentials remains unexplained.…”

Section: Introductionmentioning

confidence: 99%

Firm Size and Wages in Italy: Evidence from Exogenous Job Displacements

Scoppa

2013

The Manchester School

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We use longitudinal data based on administrative archives from 1985 to 2002 to estimate the relationship between wages and firm size in Italy. By controlling for individual fixed effects, we find that larger firms pay significantly higher wages, although the individual unmeasured ability component accounts for about one half of the uncovered size–wage premium. To reduce potential self‐selection problems arising from endogenous job changes, we focus on a sample of workers displaced by firm closures. By using this sample, we confirm that larger firms pay higher wages, in part for unmeasured workers' abilities and in part for firm size effects.

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Firm Size-Wage Premiums: Using Employer Data to Unravel the Mystery

Cited by 15 publications

References 25 publications

Does job embeddedness predict turnover intentions in SMEs?

Does job embeddedness predict turnover intentions in SMEs?

Strategische Orientierung und Gehaltsstrukturen von Personalleitenden

Firm Size and Wages in Italy: Evidence from Exogenous Job Displacements

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