How selective are real wage cuts? A micro-analysis using linked employer–employee data

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How selective are real wage cuts? A micro-analysis using linked employer–employee data. / Hirsch, Boris; Zwick, Thomas.
in: Labour - Review of labour economics and industrial relations, Jahrgang 29, Nr. 4, 01.12.2015, S. 327-347.

Publikation: Beiträge in ZeitschriftenZeitschriftenaufsätzeForschungbegutachtet

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@article{36fd6d6b300c43b9b2f6fe4e31499de3,
title = "How selective are real wage cuts?: A micro-analysis using linked employer–employee data",
abstract = "Using linked employer-employee panel data for Germany, we investigate whether firms implement real wage reductions in a selective manner. In line with insider-outsider and several strands of efficiency wage theory, we find strong evidence for selective wage cuts with high-productivity workers being spared even when controlling for permanent differences in firms' wage policies. In contrast to some recent contributions stressing fairness considerations, we also find that wage cuts increase wage dispersion among peers rather than narrowing it. Notably, the same selectivity pattern shows up when restricting our analysis to firms covered by collective agreements or having a works council. {\textcopyright} 2015 CEIS, Fondazione Giacomo Brodolini and John Wiley",
keywords = "Economics",
author = "Boris Hirsch and Thomas Zwick",
year = "2015",
month = dec,
day = "1",
doi = "10.1111/labr.12063",
language = "English",
volume = "29",
pages = "327--347",
journal = "Labour - Review of labour economics and industrial relations",
issn = "1121-7081",
publisher = "Wiley-Blackwell Publishing, Inc.",
number = "4",

}

RIS

TY - JOUR

T1 - How selective are real wage cuts?

T2 - A micro-analysis using linked employer–employee data

AU - Hirsch, Boris

AU - Zwick, Thomas

PY - 2015/12/1

Y1 - 2015/12/1

N2 - Using linked employer-employee panel data for Germany, we investigate whether firms implement real wage reductions in a selective manner. In line with insider-outsider and several strands of efficiency wage theory, we find strong evidence for selective wage cuts with high-productivity workers being spared even when controlling for permanent differences in firms' wage policies. In contrast to some recent contributions stressing fairness considerations, we also find that wage cuts increase wage dispersion among peers rather than narrowing it. Notably, the same selectivity pattern shows up when restricting our analysis to firms covered by collective agreements or having a works council. © 2015 CEIS, Fondazione Giacomo Brodolini and John Wiley

AB - Using linked employer-employee panel data for Germany, we investigate whether firms implement real wage reductions in a selective manner. In line with insider-outsider and several strands of efficiency wage theory, we find strong evidence for selective wage cuts with high-productivity workers being spared even when controlling for permanent differences in firms' wage policies. In contrast to some recent contributions stressing fairness considerations, we also find that wage cuts increase wage dispersion among peers rather than narrowing it. Notably, the same selectivity pattern shows up when restricting our analysis to firms covered by collective agreements or having a works council. © 2015 CEIS, Fondazione Giacomo Brodolini and John Wiley

KW - Economics

UR - http://www.scopus.com/inward/record.url?scp=84946474843&partnerID=8YFLogxK

UR - https://www.mendeley.com/catalogue/e8316438-61bf-33b2-ba23-0e4bfc6f71a7/

U2 - 10.1111/labr.12063

DO - 10.1111/labr.12063

M3 - Journal articles

VL - 29

SP - 327

EP - 347

JO - Labour - Review of labour economics and industrial relations

JF - Labour - Review of labour economics and industrial relations

SN - 1121-7081

IS - 4

ER -

DOI