| Investigation 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 selection of 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 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. |
