Working Paper: CEPR ID: DP12698
Authors: Kyung Kim; Jozef Konings
Abstract: 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.
Keywords: wage inequality; managerial talent; globalization
JEL Codes: F16; J31
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Establishment Size (L25) | Wage Dispersion (J31) |
| Export Activities (Y10) | Wage Dispersion (J31) |
| Foreign Ownership Share (F23) | Wage Dispersion (J31) |
| Establishment Size, Export Activities (L25) | Wage Dispersion (J31) |