Abstract
This paper empirically investigates (a) the relationship between establishment size and the degree of flexibility in the work environment, and (b) the extent to which establishment size differences in workers satisfaction with their jobs can be accounted for by differences in their work environment. The main findings are that large establishments do organize production in a less-flexible fashion than do smaller establishments, and that observed lower levels of job satisfaction in larger establishments (net of wage and fringe benefit effects) can largely be explained by the inflexibility in the work environment.
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