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Is industry size a carrier for wage inequality? A panel study addressing independent variables of inherently different sizes across units

Journal of risk and financial management, 2021-09, Vol.14 (9), p.1-8 [Peer Reviewed Journal]

2021 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https://creativecommons.org/licenses/by/4.0/). Notwithstanding the ProQuest Terms and Conditions, you may use this content in accordance with the terms of the License. ;ISSN: 1911-8074 ;ISSN: 1911-8066 ;EISSN: 1911-8074 ;DOI: 10.3390/jrfm14090436

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  • Title:
    Is industry size a carrier for wage inequality? A panel study addressing independent variables of inherently different sizes across units
  • Author: Aarstad, Jarle ; Kvitastein, Olav Andreas
  • Subjects: Employees ; fixed effects regression ; Gini coefficients ; Inequality ; unit size ; Variables ; Wage differential ; wage inequality ; Wages & salaries
  • Is Part Of: Journal of risk and financial management, 2021-09, Vol.14 (9), p.1-8
  • Description: We address how independent variables of inherently different sizes across units, e.g., small vs. large industries, in panel regression is an advantage interpretively. Analyzing a Norwegian industry panel, we find that wage inequality is a function of industry size, particularly size increase, in an absolute number of firms. A possible reason is that specialized skilled employees negotiate higher wages when there are many legal entities. The findings can also imply that wage inequality is more sensitive to random change, particularly an increase, in large rather than small industries. We conclude that particularly large industries are positive carriers of wage inequality and discuss potential underlying causal mechanisms such as monopolistic competition.
  • Publisher: Basel: MDPI
  • Language: English
  • Identifier: ISSN: 1911-8074
    ISSN: 1911-8066
    EISSN: 1911-8074
    DOI: 10.3390/jrfm14090436
  • Source: ProQuest Central
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