Comments on: Why big companies pay better http://blogs.reuters.com/felix-salmon/2009/05/26/why-big-companies-pay-better/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: DCeconomist http://blogs.reuters.com/felix-salmon/2009/05/26/why-big-companies-pay-better/comment-page-1/#comment-2352 Wed, 03 Jun 2009 19:16:32 +0000 http://blogs.reuters.com/felix-salmon/2009/05/26/why-big-companies-pay-better/#comment-2352 This is a common finding with no known explanation – observationally equivilent workers receive a wage premium at larger companies – even within the same industry. It is a stylized fact in search of a good theory to explain it.

As for increased opportunites at small firms – I know of no evidence that wage growth is larger for workers at small firms. It may be the case that workers do prefer the working environment in smaller companies – however, turnover is generally greater at small firms as well. It might be the case that small firms provide workers an opportunity to build skills and experience that they can use to find a better paying job elsewhere.

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By: Fang http://blogs.reuters.com/felix-salmon/2009/05/26/why-big-companies-pay-better/comment-page-1/#comment-2166 Sat, 30 May 2009 09:42:17 +0000 http://blogs.reuters.com/felix-salmon/2009/05/26/why-big-companies-pay-better/#comment-2166 Big companies pay you more, so you have to follow up more game rules in the company. You get paid more, you have less freedom. It’s fair.

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By: Laocoon http://blogs.reuters.com/felix-salmon/2009/05/26/why-big-companies-pay-better/comment-page-1/#comment-2163 Sat, 30 May 2009 01:15:56 +0000 http://blogs.reuters.com/felix-salmon/2009/05/26/why-big-companies-pay-better/#comment-2163 Small companies can pay fairly well if you are the owner and bury a lot of expenses in the business, plus use the ability to set aside more in the deferred comp plans. Other than that, for a business of any size, a small firm is not so great. I worked for a number of small firms and the variety was not more wonderful than the lack of benefits, lack of raises (somehow the owners felt your salary came out of their own pocket), and lack of credibility when looking to move to another firm.

For most people, a big company provides more in benefits, especially health care where more is covered, and credibility when switching jobs. Plus you can do your actual job and not have to pitch in and fix the copier or some other menial task because the firm really is that small.

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By: Dave http://blogs.reuters.com/felix-salmon/2009/05/26/why-big-companies-pay-better/comment-page-1/#comment-1995 Tue, 26 May 2009 20:35:45 +0000 http://blogs.reuters.com/felix-salmon/2009/05/26/why-big-companies-pay-better/#comment-1995 I’ll bet you 100 bucks that the difference disappears if you control for public ownership.

Public companies pay better than private ones.
Google “agency costs”

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By: Lord http://blogs.reuters.com/felix-salmon/2009/05/26/why-big-companies-pay-better/comment-page-1/#comment-1987 Tue, 26 May 2009 19:07:53 +0000 http://blogs.reuters.com/felix-salmon/2009/05/26/why-big-companies-pay-better/#comment-1987 The flaw here is the average for a large company includes a lot of vastly overpaid executives at the top. Someone starting out or in middle management could easily find it better at a small company, it is just they have less height to grow.

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By: Lord http://blogs.reuters.com/felix-salmon/2009/05/26/why-big-companies-pay-better/comment-page-1/#comment-1984 Tue, 26 May 2009 19:02:25 +0000 http://blogs.reuters.com/felix-salmon/2009/05/26/why-big-companies-pay-better/#comment-1984 Small companies are more variable though, so some small companies pay very well although most do not.

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By: John Caddell http://blogs.reuters.com/felix-salmon/2009/05/26/why-big-companies-pay-better/comment-page-1/#comment-1979 Tue, 26 May 2009 18:18:58 +0000 http://blogs.reuters.com/felix-salmon/2009/05/26/why-big-companies-pay-better/#comment-1979 So, how’s Reuters treatin’ ya?

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By: herb http://blogs.reuters.com/felix-salmon/2009/05/26/why-big-companies-pay-better/comment-page-1/#comment-1976 Tue, 26 May 2009 17:38:07 +0000 http://blogs.reuters.com/felix-salmon/2009/05/26/why-big-companies-pay-better/#comment-1976 I think some smaller organizations may be able to pay more because the food chain is smaller. the less blood sucking overhead (employees) between you and the top. The higher the salary.

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