THE EMPLOYER SIZE WAGE GAP - EVIDENCE FOR BRITAIN

This paper presents estimates for the employer plant size-wage gap for Britain. Using an ordered probit model, selectivity-corrected wage eq uations are estimated for three plant size categories. In a comparison between plants with more than 500 workers and those with less than 10 0, a wage gap estimate of over 17 per cent is detected. The wage effec ts of unionization in plants with more than 500 workers is reported as insignificant. In contrast to evidence provided by Idson and Feaster (1990) for the United States, no evidence of non-random sorting of wor kers across plant size is detected.