Mainstay III

61 domestic plants employing fewer than 500 employees. Nonproduction workers earn an average of 5.0 percent less at domestic plants employing more than 500 employees and 9.5 percent less at domestic plants employing fewer than 500 employees. Moreover, there are several reasons to suppose these figures understate the size of the overall-compensation premium paid by U.S. parents.

The higher wages paid by U.S. parents seem to follow directly from the productivityenhancing activities these parents do including lots of physical investment, R&D, and international trade.