I document the comovement of the skill premium with the differential employer size wage premium between high- and low-skill workers in U.S. manufacturing during the postwar era. For the baseline specification, i.e., establishments with at least 500 employees categorized as large employers and...

For the USA in 1987–2017, I document, at business cycle frequencies, that the employer-size wage premium of high-skill workers tends to be high (low) in times of low (high) unemployment relative to that of low-skill workers. The differential size wage premium between high-skill and low-skill...