This dissertation aims to explore why large employers pay higher wages compared to similar workers in smaller size establishments in the presence of nonrandom assignment of workers. The main focus is to determine the magnitude of the size-wage impact in the presence of selection and to test various methods to explain employer size and wage relationship. The objectives of the dissertation are multifold. One chapter leaves us with sorne questions and that question becomes motivation for the next chapter. AlI the chapters aim to explore the employer size and wage relationship in the presence of selection bias. This is not a new question in labor economics. The econometric methods are not new either. But this is an addition to the French labor market in this literature. Moreover, the methods applied on this question have not been use d, to our knowledge, before, for example, PSM, FIML, and pseudo panel etc.
