Latest / Catalyst Center for Work Innovation: The Debate
A Debate about the Disappearing Size Wage Effect in Large Firms
This research examines a phenomenon where wages remain uniform across different locations of a single large company, despite traditional economic theories suggesting that larger sites should pay more. While independent businesses usually offer higher salaries as they grow, multi-establishment firms tend to prioritize internal equity and standardized pay scales over local market fluctuations. To compensate for these rigid wages, large organizations utilize non-wage recruitment strategies, such as enhanced employer branding, increased recruiting intensity, and better benefits. This approach…
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