Intra Firm Wage Dispersion And Firm Performance Is There A Uniform Relationship
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Author | : Uwe Jirjahn |
Publisher | : |
Total Pages | : 0 |
Release | : 2007 |
Genre | : |
ISBN | : |
Empirical studies examining the impact of intra-firm wage dispersion on firm performance report extremely mixed results. Yet, almost all of the studies implicitly assume that there is a uniform relationship between wage dispersion and firm performance across all types of firms. In contrast, we argue that the effects of wage dispersion depend on the industrial relations regime and the type of incentive scheme employed. Using data on a sample of manufacturing establishments in Germany, our findings confirm that wage dispersion interacts with internal promotions, individual and group piece rates, works council presence and collective bargaining coverage. This strongly supports the notion that moderating factors play an important role in the relationship between intra-firm wage dispersion and productivity.
Author | : Rudolf Winter-Ebmer |
Publisher | : |
Total Pages | : 0 |
Release | : 2001 |
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ISBN | : |
Personnel economics has put forward conflicting arguments concerning the impact of increased wage dispersion within a firm on the productivity of its workers. Besides giving more incentives, bigger wage differentials might also give rise to less co-operation and more politicking amongst workers resulting in worse outcomes. We try to shed light on these issues using panel data for Austrian firms. As indicators for firm performance we use standardized wages. For white-collar wages the following picture emerges: more dispersion leads to higher earnings up to some point where the relation changes its direction. For blue-collar wages we find a positive association between dispersion and standardized wages between firms, but no relation within firms over time.
Author | : Thierry Lallemand |
Publisher | : |
Total Pages | : 0 |
Release | : 2005 |
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ISBN | : |
This paper examines the relationship between intra-firm wage dispersion and firm performance in large Belgian firms using a unique matched employer-employee data set. On the basis of the Winter-Ebmer and Zweimuller's (1999) methodology, we find a positive and significant relationship between intra-firm wage dispersion and profits per capita, even when controlling for individual and firm characteristics and addressing potential simultaneity problems. Results also suggest that the intensity of this relationship is stronger for blue-collar workers and within firms with a high degree of monitoring. These findings are more in line with the 'tournament' models than with the 'fairness, morale and cohesiveness' models.
Author | : Konstantinos Tatsiramos |
Publisher | : Emerald Group Publishing |
Total Pages | : 320 |
Release | : 2013-11-13 |
Genre | : Business & Economics |
ISBN | : 1783500573 |
In no economy do all employees fare equally. Some variation stems from innate worker heterogeneity, some from differential human capital investment, some from imperfect information, some from demand shocks, some from asymmetric technological change, and some from government policies.
Author | : Jörg Schäfer |
Publisher | : Springer |
Total Pages | : 209 |
Release | : 2016-08-05 |
Genre | : Business & Economics |
ISBN | : 3658145471 |
Jörg Schäfer investigates the influence of family firm specific decision rationales based on socioemotional wealth on vertical and horizontal pay ranges in family firms. Building on a primary data set of over 200 family firms in Germany and applying multiple regression analysis techniques, as well as, the firm conceptual foundation in family firm and compensation theory, the presented study provides answers regarding antecedents of pay variation, and the factors that drive different family firms to pursue and implement specific pay structures and pay variations. Furthermore, the dissertation contributes to the current research discussions, by partially validating the FIBER scale, proving the heterogeneity of family firms and adding robustness to methodology and range measures in the compensation context.
Author | : M. Ronald Buckley |
Publisher | : Emerald Group Publishing |
Total Pages | : 321 |
Release | : 2014-06-04 |
Genre | : Business & Economics |
ISBN | : 1783508248 |
Volume 32 of Research in Personnel and Human Resources Management (RPHRM) contains seven papers on important issues in the field of human resources management. The subject matter in this volume covers myriad areas: compensation, performance evaluation, reputation, employee furloughs, and research methodology.
Author | : Dale T. Mortensen |
Publisher | : |
Total Pages | : 0 |
Release | : 2009 |
Genre | : Labor market |
ISBN | : |
Matched employer-employee data exhibits both wage and productivity dispersion across firms and suggest that a linear relationship holds between the average wage paid and a firm productivity. The purpose of this paper is to demonstrate that these facts can be explained by a search and matching model when firms are heterogenous with respect to productivity, are composed of many workers, and face diminishing returns to labor given the wage paid to identical workers is the solution to the Stole-Zwiebel bilateral bargaining problem. Helpman and Iskhoki (2008) show that a unique single wage (degenerate) equilibrium solution to the model exists in this environment. In this paper, I demonstrate that another equilibrium exists that can be characterized by a non-degenerate distribution of wages in which more productive firms pay more if employed workers are able to search. Generically this dispersed wage equilibrium is unique and exists if and only if firms are heterogenous with respect to factor productivity. Finally, employment is lower in the dispersed wage equilibrium than in the single wage equilibrium but this fact does not imply that welfare is higher in the single wage equilibrium.
Author | : Gerd Grözinger |
Publisher | : Cambridge Scholars Publishing |
Total Pages | : 270 |
Release | : 2016-05-11 |
Genre | : History |
ISBN | : 1443893110 |
This book presents a review of the last twenty years of research in German industrial relations. Divided into three parts, it begins by exploring the major developments in this field of research. It then describes the academic field of industrial relations in Germany from different perspectives, looking back on twenty years of “Industrielle Beziehungen” – the German Journal of Industrial Relations. This is rounded off by an analysis of the changes in the real world of the German model and its major institutions, namely the DGB trade unions and co-determination on the establishment-level. In addition, the book discusses the contributions of neighbouring disciplines, particularly human resource management, economics, and labour law. As the German model and its developments are interesting not only for researchers in industrial relations, but also for practitioners in business and administration, this volume addresses both groups of readers.
Author | : Christian Grund |
Publisher | : |
Total Pages | : |
Release | : 2004 |
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ISBN | : |
Author | : Arngrim Hunnes |
Publisher | : |
Total Pages | : 33 |
Release | : 2006 |
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