IS BIGGER BETTER - EXPLAINING THE RELATIONSHIP BETWEEN ORGANIZATION SIZE AND JOB REWARDS

Do employees in large organizations receive different economic and non economic job rewards than do employees in small organizations? If so, what explains the relationship between organization size and job rewar ds? We examine these questions using a recent nationally representativ e data set that provides information on organizations and their employ ees in the United States. We find that employees in large organization s have higher earnings, more fringe benefits and opportunities for pro motion, but less autonomy on the job than do workers employed by small organizations. Our theoretical framework identifies several possible reasons for the relationship between organization size and job rewards , including industrial, geographic, organizational, and individual var iables. Whether a firm has internal labor markets is the correlate of organization size most consistently related to job rewards.