L'influence de la dispersion salariale sur la performance des grandes entreprises belges

Benoit Mahy, Francois Rycx and Mélanie Volral

No 08-13.RS, DULBEA Working Papers from ULB -- Universite Libre de Bruxelles

Abstract: This paper examines the impact of wage dispersion on firm performance, measured by value-added per worker, in large Belgian firms. Using matched employer-employee data for 2003, we find the existence of a positive and hump-shaped relationship between (conditional) wage dispersion and firm performance, even when controlling for worker and firm characteristics and addressing potential simultaneity problems. The comparison between estimated turning points and descriptive statistics of our sample suggest that increasing wage dispersion might increase value-added per worker in Belgium, particularly among white-collar workers. This might be due to both greater monitoring costs and production-effort elasticity considerations.

Keywords: Wage dispersion; Personnel economics; Matched employer-employee data; Belgium. (search for similar items in EconPapers)
JEL-codes: J31 J32 (search for similar items in EconPapers)
Date: 2008-05
New Economics Papers: this item is included in nep-bec and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Published by: ULB, DULBEA

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Journal Article: L'influence de la dispersion salariale sur la performance des grandes entreprises belges (2008)
Working Paper: L'influence de la dispersion salariale sur la performance des grandes entreprises belges (2008)
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