Please use this identifier to cite or link to this item: https://doi.org/10.48548/pubdata-1280
Resource typeWorking Paper
Title(s)Intra-firm wage inequality and firm performance - First evidence from German linked employer-employee-data
DOI10.48548/pubdata-1280
Handle20.500.14123/1343
CreatorBraakmann, Nils  0000-0002-7529-7764  132389231
AbstractEconomic 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.
LanguageEnglish
KeywordsWage Dispersion; Productivity; Lohnniveau; Lohndifferenzierung; Produktivität
Year of publication in PubData2008
Publishing typeFirst publication
Publication versionPublished version
Date issued2008-02-26
Creation contextResearch
Published byMedien- und Informationszentrum, Leuphana Universität Lüneburg
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