Wage inequality and establishment heterogeneity

In Kyung Kim; Jozef Konings

doi:10.1016/j.japwor.2019.04.004

Wage inequality and establishment heterogeneity

In Kyung Kim
, Jozef Konings

Research output: Contribution to journal › Article › peer-review

3 Citations (Scopus)

Abstract

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 language	English
Pages (from-to)	47-55
Number of pages	9
Journal	Japan and the World Economy
Volume	50
DOIs	https://doi.org/10.1016/j.japwor.2019.04.004
Publication status	Published - Jun 2019

Funding

We are grateful to Dinara Alpysbayeva for comments and suggestions. Financial support of Nazarbayev University under the small research grant and from KU Leuven (Methusalem) is gratefully acknowledged. We also acknowledge support of the EU horizon 2020 grant GROWING PRO GA No. 822781 (work package 2.3).

Keywords

Globalization
Managerial talent
Wage inequality

ASJC Scopus subject areas

Finance
Economics and Econometrics
Political Science and International Relations

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10.1016/j.japwor.2019.04.004

Cite this

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title = "Wage inequality and establishment heterogeneity",

abstract = "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 {\textquoteleft}super star{\textquoteright} firms and global supply chains.",

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note = "Funding Information: We are grateful to Dinara Alpysbayeva for comments and suggestions. Financial support of Nazarbayev University under the small research grant and from KU Leuven (Methusalem) is gratefully acknowledged. We also acknowledge support of the EU horizon 2020 grant GROWING PRO GA No. 822781 (work package 2.3). Publisher Copyright: {\textcopyright} 2019 Elsevier B.V.",

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AU - Konings, Jozef

N1 - Funding Information: We are grateful to Dinara Alpysbayeva for comments and suggestions. Financial support of Nazarbayev University under the small research grant and from KU Leuven (Methusalem) is gratefully acknowledged. We also acknowledge support of the EU horizon 2020 grant GROWING PRO GA No. 822781 (work package 2.3). Publisher Copyright: © 2019 Elsevier B.V.

PY - 2019/6

Y1 - 2019/6

N2 - 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.

AB - 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.

KW - Globalization

KW - Managerial talent

KW - Wage inequality

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SN - 0922-1425

VL - 50

SP - 47

EP - 55

JO - Japan and the World Economy

JF - Japan and the World Economy

ER -

Wage inequality and establishment heterogeneity

Abstract

Funding

Keywords

ASJC Scopus subject areas

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