Does Firm Size Affect Worker Earnings? Case of Iranian Manufacturing Enterprises

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Saeed Rasekhi
Iman Cheratian
Alireza Pourfaraj

Abstract

Empirical literature on the link between firm size and wage effect indicates the positive effect of firm size on its workers’ earnings. The present study analyses firm characteristics and wage linkage in Iranian manufacturing enterprises over the period from 2004-2013. The findings indicate that the effect of education, skill, and gender on worker earnings in large enterprises is stronger than that in small and medium enterprises (SMEs). In addition, in the Iranian manufacturing sector, larger exporting enterprises are more productive and capital intensive and tend to pay more wages and non-wage benefits to their employees.


 

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