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Is Bigger Better? Explaining the Relationship Between Organization Size and Job Rewards

Arne L. Kalleberg and Mark E. Van Buren
American Sociological Review
Vol. 61, No. 1 (Feb., 1996), pp. 47-66
Stable URL: http://www.jstor.org/stable/2096406
Page Count: 20
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Is Bigger Better? Explaining the Relationship Between Organization Size and Job Rewards
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Abstract

Do employees in large organizations receive different economic and noneconomic job rewards than do employees in small organizations? If so, what explains the relationship between organization size and job rewards? We examine these questions using a recent nationally representative data set that provides information on organizations and their employees in the United States. We find that employees in large organizations have higher earnings, more fringe benefits and opportunities for promotion, but less autonomy on the job than do workers employed by small organizations. Our theoretical framework identifies several possible reasons for the relationship between organization size and job rewards, including industrial, geographic, organizational, and individual variables. Whether a firm has internal labor markets is the correlate of organization size most consistently related to job rewards.

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