Recent Canadian
evidence on job quality by firm size
by René Morissette and Marie
Drolet
Business and Labour Market Analysis Division
Analytical Studies
Branch research paper series, No. 128
Wage levels and fringe benefits are
among the many dimensions in the estimation of "job quality". Based on these two
aspects, previous studies showed that workers employed in large firms were better
off that those in small firms. This study adds another dimension, work schedules
in the different firm sizes and in industry types.
The wage gap between
small and large firms has remained fairly stable over the past decade. After controlling
for observable worker characteristics and industry-specific effects, large firms
pay 15% to 20% more than small firms. Compared with employees in large firms,
those in small firms generally work at least as many weekly hours and are more
likely to work more than five days per week. This implies that the wage premium
observed in large firms cannot be explained by a longer workweek. In terms of
fringe benefits, the availability of pension plan coverage remains three to five
times higher in large firms than in small firms.
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the full publication.
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