Managing skill premium through firm structure

Previous research has consistently demonstrated a positive relation between firm size and skill premium. We decompose this result by type of skilled worker using data from Chilean firms and find that returns in skill premium to size are an order of magnitude larger for owners and managers compared t...

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Autores:: Hill, Enoch
Pérez Reyna, David Alejandro

Tipo de recurso:: Work document

Fecha de publicación:: 2017

Institución:: Universidad de los Andes

Repositorio:: Séneca: repositorio Uniandes

Idioma:: eng

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spelling	Al consultar y hacer uso de este recurso, está aceptando las condiciones de uso establecidas por los autores.http://creativecommons.org/licenses/by-nc-nd/4.0/info:eu-repo/semantics/openAccesshttp://purl.org/coar/access_right/c_abf2Hill, Enoch2142348d-8a00-42fc-817a-206452075233500Pérez Reyna, David Alejandro266375002018-09-27T16:56:25Z2018-09-27T16:56:25Z20171657-5334http://hdl.handle.net/1992/87271657-719110.57784/1992/8727instname:Universidad de los Andesreponame:Repositorio Institucional Sénecarepourl:https://repositorio.uniandes.edu.co/Previous research has consistently demonstrated a positive relation between firm size and skill premium. We decompose this result by type of skilled worker using data from Chilean firms and find that returns in skill premium to size are an order of magnitude larger for owners and managers compared to other types of skilled workers. We interpret this to imply that firm structure is important for understanding the relationship between skill premium and firm size. We propose an original model of firm hierarchy which rationalizes our empirical finding. In our model, more productive firms maximize profits by choosing to employ more levels of management. These managers require a higher average skill level and command a higher average skill premium. Additionally, our model predicts that skill premium is increasing in the ratio of workers to managers, a fact we also observe in the Chilean data.La literatura ha encontrado una relación positiva entre el tamaño de una empresa y la prima por habilidad. En este artículo descomponemos este resultado por tipo de trabajador habilidoso usando datos de empresas chilenas. Encontramos que los retornos en la prima de habilidad relativo al tamaño de una empresa son mayores en un orden de magnitud para dueños y administradores de empresas, comparado con otros tipos de trabajadores habilidadosos. Esto implica que analizar la estructura de una empresa es importante para entender la relación entre prima por habilidad y el tamaño de una empresa. Proponemos un modelo de jerarquía en las empresas que racionaliza este resultado empírico. En nuestro modelo las empresas más productivas maximizan beneficios por medio de la escogencia de más niveles de administración. Los administradores en estos niveles requieren una mayor habilidad y demandan una mayor prima por habilidad. Nuestro modelo predice que la prima por habilidad es creciente en la razón entre administradores y trabajadores, que es consistente con lo que observamos en los datos chilenos.29 páginasapplication/pdfengUniversidad de los Andes, Facultad de Economía, CEDEDocumentos CEDE No. 38 Junio de 2017https://ideas.repec.org/p/col/000089/015626.htmlManaging skill premium through firm structureAdministrando la prima por habilidad por medio de la estructura de las empresasDocumento de trabajoinfo:eu-repo/semantics/workingPaperhttp://purl.org/coar/resource_type/c_8042http://purl.org/coar/version/c_970fb48d4fbd8a85Texthttps://purl.org/redcol/resource_type/WPSkill premiumFirm structureHuman capitalIncentivos salariales - Modelos econométricosTamaño de la industriaCapital humanoJ31, L22, D23Facultad de EconomíaPublicationTHUMBNAILdcede2017-38.pdf.jpgdcede2017-38.pdf.jpgIM Thumbnailimage/jpeg10598https://repositorio.uniandes.edu.co/bitstreams/d5d247a4-2115-41f7-be13-0e80207f8ca6/download03050c9b169daeb97a7875c1b1477e42MD55ORIGINALdcede2017-38.pdfdcede2017-38.pdfapplication/pdf547910https://repositorio.uniandes.edu.co/bitstreams/4700d362-494f-4bc7-ba47-a75d0a9ef600/download6f89761cd6e3b31f70dd9ae8f425eabdMD51TEXTdcede2017-38.pdf.txtdcede2017-38.pdf.txtExtracted texttext/plain66221https://repositorio.uniandes.edu.co/bitstreams/2ac238a8-bdba-4867-b9c8-5069e5bd66db/download33c33f17bbe33aad268a8f57984a0ab1MD541992/8727oai:repositorio.uniandes.edu.co:1992/87272024-06-04 15:12:38.672http://creativecommons.org/licenses/by-nc-nd/4.0/open.accesshttps://repositorio.uniandes.edu.coRepositorio institucional Sénecaadminrepositorio@uniandes.edu.co
dc.title.none.fl_str_mv	Managing skill premium through firm structure
dc.title.alternative.none.fl_str_mv	Administrando la prima por habilidad por medio de la estructura de las empresas
title	Managing skill premium through firm structure
spellingShingle	Managing skill premium through firm structure Skill premium Firm structure Human capital Incentivos salariales - Modelos econométricos Tamaño de la industria Capital humano J31, L22, D23
title_short	Managing skill premium through firm structure
title_full	Managing skill premium through firm structure
title_fullStr	Managing skill premium through firm structure
title_full_unstemmed	Managing skill premium through firm structure
title_sort	Managing skill premium through firm structure
dc.creator.fl_str_mv	Hill, Enoch Pérez Reyna, David Alejandro
dc.contributor.author.none.fl_str_mv	Hill, Enoch Pérez Reyna, David Alejandro
dc.subject.keyword.none.fl_str_mv	Skill premium Firm structure Human capital
topic	Skill premium Firm structure Human capital Incentivos salariales - Modelos econométricos Tamaño de la industria Capital humano J31, L22, D23
dc.subject.armarc.none.fl_str_mv	Incentivos salariales - Modelos econométricos Tamaño de la industria Capital humano
dc.subject.jel.none.fl_str_mv	J31, L22, D23
description	Previous research has consistently demonstrated a positive relation between firm size and skill premium. We decompose this result by type of skilled worker using data from Chilean firms and find that returns in skill premium to size are an order of magnitude larger for owners and managers compared to other types of skilled workers. We interpret this to imply that firm structure is important for understanding the relationship between skill premium and firm size. We propose an original model of firm hierarchy which rationalizes our empirical finding. In our model, more productive firms maximize profits by choosing to employ more levels of management. These managers require a higher average skill level and command a higher average skill premium. Additionally, our model predicts that skill premium is increasing in the ratio of workers to managers, a fact we also observe in the Chilean data.
publishDate	2017
dc.date.issued.none.fl_str_mv	2017
dc.date.accessioned.none.fl_str_mv	2018-09-27T16:56:25Z
dc.date.available.none.fl_str_mv	2018-09-27T16:56:25Z
dc.type.spa.fl_str_mv	Documento de trabajo
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dc.identifier.doi.none.fl_str_mv	10.57784/1992/8727
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dc.language.iso.none.fl_str_mv	eng
language	eng
dc.relation.ispartofseries.none.fl_str_mv	Documentos CEDE No. 38 Junio de 2017
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dc.format.extent.none.fl_str_mv	29 páginas
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dc.publisher.none.fl_str_mv	Universidad de los Andes, Facultad de Economía, CEDE
publisher.none.fl_str_mv	Universidad de los Andes, Facultad de Economía, CEDE
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Managing skill premium through firm structure

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