Wage inequality and establishment heterogeneity

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We analyze wage dispersion within and across establishments in Korea between 2007 and 2013. We find that foreign owned establishments and those operating in global markets have higher within-establishment wage dispersion. The effect is over and above the establishment size effect. Furthermore, wages are higher in larger establishments and internationally oriented ones. Our findings are consistent with theories explaining management pay and the scope of control. Our results also provide evidence that can explain the rise in wage inequality due to the emergence of ‘super star’ firms and global supply chains.

Original languageEnglish
Pages (from-to)47-55
Number of pages9
JournalJapan and the World Economy
Publication statusPublished - Jun 2019


  • Globalization
  • Managerial talent
  • Wage inequality

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics
  • Political Science and International Relations

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