Do smaller firms pay less in the Caribbean? The case of Trinidad and Tobago

Marcelle, Miguel;Strobl, Eric
(2003) The Journal of Development Studies — Vol. 39, n° 5, p. 181-198 (2003)

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  • Marcelle, MiguelUniversity of Notre Dame
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  • Strobl, EricUCLouvain
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Abstract
This article constitutes the first study of the employer size wage effect for a Caribbean country, namely the Republic of Trinidad and Tobago. Using a rich micro-level data set we estimate the firm size wage premium in an empirical model of wage determination. Despite exploring a variety of theories, samples, estimation techniques and tests, we find that, consistent with the empirical literature, larger firms in Trinidad and Tobago pay higher wages than smaller firms, for equally productive workers.
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Marcelle, M., & Strobl, E. (2003). Do smaller firms pay less in the Caribbean? The case of Trinidad and Tobago. The Journal of Development Studies, 39(5), 181-198. https://doi.org/10.1080/00220380412331333199 (Original work published 2003)