DP12698 Wage Inequality and Establishment Heterogeneity
|Author(s):||In Kyung Kim, Jozef Konings|
|Publication Date:||February 2018|
|Keyword(s):||Globalization, Managerial talent, Wage inequality|
|Programme Areas:||Industrial Organization|
|Link to this Page:||www.cepr.org/active/publications/discussion_papers/dp.php?dpno=12698|
We analyze wage dispersion within and across establishments in Korea between 2007 and 2013. We find that foreign owned establishments and those operating in global markets have higher within establishment wage dispersion. The effect is over and above the establishment size effect. Furthermore, wages are higher in larger establishments and internationally oriented ones. Our findings are consistent with theories explaining management pay and the scope of control. Our results also provide evidence that can explain the rise in wage inequality due to the emergence of "super star" firms and global supply chains.