The formal sector wage premium and firm size
By: by Eliane Badaoui, Eric Strobl, Frank Walsh
Contributors: Strobl, Eric, 1969-
Series: Discussion paper -- no. 3145; Discussion paper (Forschungsinstitut zur Zukunft der Arbeit : Online) -- no. 3145
Publisher: IZA
Published: 2007
Place of publication: Bonn, Germany
Language: eng
Format: [electronic resource] /
Subjects: Wages; Informal sector (Economics); Industries; Size of
Description: "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"--Forschungsinstitut zur Zukunft der Arbeit web site.
Notes: Title from PDF file as viewed on 11/23/2007.

Includes bibliographical references.

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