Firm Age and Wages / Charles Brown, James L. Medoff.

Format:

Book

Author/Creator:

Brown, Charles.

Contributor:

National Bureau of Economic Research.

Medoff, James L.

Series:

Working Paper Series (National Bureau of Economic Research) no. w8552.

NBER working paper series no. w8552

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2001.

Summary:

In this paper, we analyze the relationship between how long an employer has been in business (firm age) and wages. Using data from special supplements to the Survey Research Center's monthly Survey of Consumers, we find that firms that have been in business longer pay higher wages (as previous studies have found), but pay if anything lower wages after controlling for worker characteristics. There is some evidence that the relationship is not monotonic, with wages falling and then rising with years in business. Older firms provide better fringe benefits and more stable employment, but these differences do not appear very important in understanding the age-wage relationship. Established employers do appear to make greater use of back-loaded compensation, consistent with their higher probability of remaining in business.

Notes:

Print version record

October 2001.