Unobserved heterogeneity and the relation between earnings and firm size: evidence from two developing countries
Large firms in Ghana and Kenya pay much higher wages than small ones. We use panel data to show this is not the result of employing high-ability individuals. The size effect remains substantial with controls for individual fixed effects.
| Main Authors: | , , |
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| Format: | Journal article |
| Language: | English |
| Published: |
Elsevier
2005
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| Summary: | Large firms in Ghana and Kenya pay much higher wages than small ones. We use panel data to show this is not the result of employing high-ability individuals. The size effect remains substantial with controls for individual fixed effects. |
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