Is Industry Size a Carrier for Wage Inequality? A Panel Study Addressing Independent Variables of Inherently Different Sizes across Units

We address how independent variables of inherently different sizes across units, e.g., small vs. large industries, in panel regression is an advantage interpretively. Analyzing a Norwegian industry panel, we find that wage inequality function size, particularly size increase, absolute number firms. A possible reason specialized skilled employees negotiate higher wages when there are many legal entities. The findings can also imply more sensitive to random change, rather than industries. conclude industries positive carriers and discuss potential underlying causal mechanisms such as monopolistic competition.