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Abstract:

cover
CentrePiece Article
Firm size, productivity and pay in today's service economy
Giuseppe Berlingieri, Sara Calligaris and Chiara Criscuolo
July 2019
Paper No' CEPCP555:
Full Paper (pdf)

CentrePiece 24 (2) Summer 2019


JEL Classification: E2; D2; J3


Tags: productivity; size-premium; wages

The evidence that bigger firms pay higher wages and have higher productivity is based mainly on 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.

This article summarises 'The Productivity-Wage 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.