Organizational Differences in Earnings
Investigates the relation of organizational characteristics to levels of employees' earnings, drawing on data from the 1991 National Organizations Study. It is generally found that the larger the organization, the higher the level of earnings across establishments. Further, earnings are higher in organizations that are more differentiated & formalized. The presence of internal labor markets is most strongly associated with higher earnings. In terms of gender differences, the long-standing conclusion that women earn appreciably less than men is supported. Separation of organizational & individual effects on earnings proved impossible, because the research design employed data from only one respondent in most organizations. It is suggested that a more comprehensive explanation of the relation between organization size & earnings level will have to take into account the possibility that size affects the dispersion of earnings as well as their average levels. 2 Tables, 1 Appendix. D. M. Smith