We analyze wage dispersion within and across establishments in Korea between 2007 and 2013. We find that foreign owned establishments and those operating in global markets have higher within- establishment wage dispersion. The effect is over and above the establishment size effect. Further- more, wages are higher in larger establishments and internationally oriented ones. Our findings are consistent with theories explaining management pay and the scope of control. Our results also pro- vide evidence that can explain the rise in wage inequality due to the emergence of ‘super star’ firms and global supply chains.
Wage Inequality and Establishment Heterogeneity