Hierarchy and the Employer Size Effect on Wages

Evidence from Britain

Bibliographic Data

ID9727472
AuthorsC Green (0000-0001-6156-4676, Norwegian University of Science and Technology, corresponding author), Colin P Green (Norwegian University of Science and Technology), John S Heywood (0000-0001-9600-2462, University of Wisconsin–Milwaukee), Nikolaos Theodoropoulos (University of Cyprus), Νικόλαος Θεοδωρόπουλος (0000-0002-0415-6534, University of Cyprus)
Year2021
Volume88
Issue351
Pages671-696
Publication date2021-07-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueEconomica (JOURNAL)
Journal identifiersISSN: 0013-0427 • E-ISSN: 1468-0335
PublisherWiley (PUBLISHER • GB)
DOI10.1111/ecca.12364
OpenAlexW3122384934
LanguageEN
Citations received2
References cited53

We argue that employer size wage effects reflect the role of hierarchy. Using matched employer–employee data and individual longitudinal data, we show that the employer size wage effects for supervisors are approximately twice those for non‐supervisors. We confirm sorting on supervisor ability, and present evidence of additional match‐specific wage returns for supervisors. We demonstrate that spans of control influence the establishment size return for supervisors but not for non‐supervisors. Talented supervisors sort into larger establishments taking a talent premium with them, but they also receive a match‐specific return on that talent only when matched with a larger establishment

Business · Control (management) · Demographic economics · Economics · Hierarchy · Labour economics · Management · sort · Sorting · Supervisor · Wage · Wage growth · Computer Science · Corporate Finance and Governance · Firm Innovation and Growth · Labor market dynamics and wage inequality

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