Friday, July 25, 2014

But it's Yglesias...

Big chains pay better than mom and pop stores, says the title of the post. But it's a story by Matthew Yglesias, so I already have my doubts. He writes:

High school graduates who work for companies with over 1,000 employees earn 15 percent more than similarly educated workers who are employed by smaller firms. Workers with at least a little college education see a bigger pay boost and earn 25 percent more when employed by big companies.

Similarly, for retail establishments:

The researchers find that not only do big companies pay higher wages, but big stores pay higher wages. High school graduates working at retail establishments with over 500 workers earn 26 percent more than similarly educated workers at smaller shops. Those with at least some college education, again, earn an even larger premium — 36 percent more at big stores than small ones.

I wonder how those numbers would look if "business size" was based on volume of sales rather than number of employees. How would it look if we compared worker pay to gross business income?

I want to see ratios of dollar-values-to-dollar-values, rather than dollar-values-to-head-counts. I don't think the bigger, the better would hold up so well if you did the dollars-to-dollars comparison.

No comments: