PubData Leuphana Repository: Intra-firm wage inequality and firm performance - First evidence from German linked employer-employee-data

Please use this identifier to cite or link to this item: https://doi.org/10.48548/pubdata-1280

Resource type	Working Paper
Title(s)	Intra-firm wage inequality and firm performance - First evidence from German linked employer-employee-data
DOI	10.48548/pubdata-1280
Handle	20.500.14123/1343
Creator	Braakmann, Nils 0000-0002-7529-7764 132389231
Abstract	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	English
Keywords	Wage Dispersion; Productivity; Lohnniveau; Lohndifferenzierung; Produktivität
Year of publication in PubData	2008
Publishing type	First publication
Publication version	Published version
Date issued	2008-02-26
Creation context	Research
Published by	Medien- und Informationszentrum, Leuphana Universität Lüneburg
Related resources	Relations of this publication Relations of this publication