Intra-firm wage inequality and firm performance - First evidence from German linked employer-employee-data
- Economic theory suggests both positive and negative relationships between intra-firm wage inequality and productivity. This paper contributes to the growing empirical literature on this subject. We combine German employer-employee-data for the years 1995-2005 with inequality measures using the whole wage distribution of a firm and rely on dynamic panel-data estimators to control for unobserved heterogeneity, simultaneity problems and possible state dependence. Our results indicate a relative minor influence of intra-firm wage inequality on firm productivity. If anything, they provide some support for a view suggesting that some inequality may be beneficial, while too much leads to a detrimental effect on productivity.
Author: | Nils Braakmann (Dr. rer. pol.)ORCiDGND |
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URL: | https://pub-data.leuphana.de/frontdoor/index/index/docId/540 |
ISBN: | 1860 - 5508 |
Document Type: | ResearchPaper |
Language: | English |
Year of Completion: | 2008 |
Date of Publication (online): | 2008/02/26 |
Release Date: | 2008/02/26 |
Tag: | Wage dispersion; labor productivity |
GND Keyword: | Lohnniveau; Lohndifferenzierung; Produktivität |
Institutes: | Fak 2 - Wirtschaft und Gesellschaft (alt) / VWL |
Dewey Decimal Classification: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |