Intra-firm wage inequality and firm performance: fist evidence from German linked employer-employee-data
Publikation: Arbeits- oder Diskussionspapiere und Berichte › Arbeits- oder Diskussionspapiere
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Intra-firm wage inequality and firm performance : fist evidence from German linked employer-employee-data. / Braakmann, Nils.
Lüneburg : Institut für Volkswirtschaftslehre der Universität Lüneburg, 2008. (Working paper series in economics; Nr. 77).Publikation: Arbeits- oder Diskussionspapiere und Berichte › Arbeits- oder Diskussionspapiere
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TY - UNPB
T1 - Intra-firm wage inequality and firm performance
T2 - fist evidence from German linked employer-employee-data
AU - Braakmann, Nils
N1 - Literaturverz. S. 19 - 21
PY - 2008
Y1 - 2008
N2 - Economic theory suggests both positive and negative relationships between intrafirm 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.
AB - Economic theory suggests both positive and negative relationships between intrafirm 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.
KW - Commercial law
KW - wage dispersion
KW - labor productivity
M3 - Working papers
T3 - Working paper series in economics
BT - Intra-firm wage inequality and firm performance
PB - Institut für Volkswirtschaftslehre der Universität Lüneburg
CY - Lüneburg
ER -