The formal sector wage premium and firm size
|Title:||The formal sector wage premium and firm size||Authors:||El Badaoui, Eliane
|Permanent link:||http://hdl.handle.net/10197/8052||Date:||Jan-2010||Abstract:||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.||Type of material:||Journal Article||Publisher:||Elsevier||Journal:||Journal of Development Economics||Volume:||91||Issue:||1||Start page:||37||End page:||47||Copyright (published version):||2009 Elsevier||Keywords:||Formal sector wage premium; Firm size; Trinidad-and-tobago; Labor-market; Developing-countries; Informal sector; Propensity score; Employer size; Unemployment; Differentials; Consequences; Taxation||DOI:||10.1016/j.jdeveco.2009.03.007||Language:||en||Status of Item:||Peer reviewed|
|Appears in Collections:||Economics Research Collection|
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