Firm Size, Wages and Production Technology

Firm Size, Wages and Production Technology Large firms pay higher wages than small ones. In this paper, the employer-size wage effect is derived with the help of a simple Nash-bargaining model where size is captured by the extent to which the production technology exhibits economies of scale. It can be shown that under reasonable assumptions an increasing returns to scale technology leads to higher wages than a constant or decreasing returns to scale technology. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Small Business Economics Springer Journals

Firm Size, Wages and Production Technology

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Publisher
Kluwer Academic Publishers
Copyright
Copyright © 2003 by Kluwer Academic Publishers
Subject
Business and Management; Management; Microeconomics; Entrepreneurship; Industrial Organization
ISSN
0921-898X
eISSN
1573-0913
D.O.I.
10.1023/A:1025747422941
Publisher site
See Article on Publisher Site

Abstract

Large firms pay higher wages than small ones. In this paper, the employer-size wage effect is derived with the help of a simple Nash-bargaining model where size is captured by the extent to which the production technology exhibits economies of scale. It can be shown that under reasonable assumptions an increasing returns to scale technology leads to higher wages than a constant or decreasing returns to scale technology.

Journal

Small Business EconomicsSpringer Journals

Published: Oct 11, 2004

References

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