CentrePiece Summer 2019
The evidence that bigger firms pay higher wages and have higher productivity is based mainlyon manufacturing, which is only a small share of today’s economy. Giuseppe Berlingieri, Sara Calligaris and Chiara Criscuolo reveal that while the size premia for both wages and productivity are significantly weaker in market services than in manufacturing, the link between wages and productivity is stronger.
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This article summarises ‘The ProductivityWage Premium: Does Size Still Matter in a Service Economy?’ by Giuseppe Berlingieri, Sara Calligaris and Chiara Criscuolo, CEP Discussion Paper No. 1557 , a shorter version of which is published in AEA Papers and Proceedings 108: 328-33.
JEL Classification: E2, D2, J3
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