“Do large firms with more technologies pay more?: Evidence from U.S. Hog Farms,” with Li Yu, Central University of Finance and Economics, China; Friday, Sep 9th, 3:40 pm - 5:00 pm, 368A Heady Hall

Li Yu is an assistant professor at the China Center for Human Capital and Labor Market Research, Central University of Finance and Economics, Beijing, China. She graduated from Iowa State University with a PhD in Economics in 2008. Her research interests include human capital and labor economics, entrepreneurship and rural development. Recent publications are in the American Journal of Agricultural Economics and Economic Quarterly Development.

Abstract: Study of size wage premium in earning’s literature neglects the important role played by technology adoption. This study models the size selection corrected earning’s function by introducing an extra dimension of individual selection based on technology complexity, using a sample from workers in US hog farms. The estimated wage gap between large and small farms is reduced once correction in selection on two dimensions is controlled. Workers compensate monetary income for better work environment, better health and more job security, in which large farms and technologically advanced farms have advantages.