Arbeitspapier
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.
- Language
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Englisch
- Bibliographic citation
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Series: Working Paper Series in Economics ; No. 77
- Classification
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Wirtschaft
Wage Level and Structure; Wage Differentials
Personnel Economics: Compensation and Compensation Methods and Their Effects
- Subject
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Lohnstruktur
Vergütungssystem
Produktivität
Panel
Deutschland
- Event
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Geistige Schöpfung
- (who)
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Braakmann, Nils
- Event
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Veröffentlichung
- (who)
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Leuphana Universität Lüneburg, Institut für Volkswirtschaftslehre
- (where)
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Lüneburg
- (when)
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2008
- Handle
- Last update
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10.03.2025, 11:45 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Braakmann, Nils
- Leuphana Universität Lüneburg, Institut für Volkswirtschaftslehre
Time of origin
- 2008