Worker flows and establishment wage differentials: a breakdown of the relationship

Richard Duhautois, Fabrice Gilles () and Héloïse Petit

Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL

Abstract: We address the relation between establishment wage differentials and worker flows, i.e., the churning rate and the quit rate. Our analysis is based on a linked employer-employee dataset covering the French private sector from 2002 to 2005. Our estimations support the hypothesis that wage premium is an efficient human resource management tool to stabilize workers: churning rates are lower in high-paying firms due to lower quit rates. We further show that the relation is not linear, and it differs among skill groups and according to establishment size: it is strongest for low-wage levels, for low-skilled workers and in large establishments.

Keywords: establishment wage effects; worker flows; spline regression; linked employer-employee data (search for similar items in EconPapers)
Date: 2012-11-15
New Economics Papers: this item is included in nep-hrm, nep-lab and nep-lma
Note: View the original document on HAL open archive server: https://hal.science/hal-00833872v1
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Citations: View citations in EconPapers (1)

Published in Workshop on job and worker flows, Nov 2012, Kyoto, Japan

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Working Paper: Worker flows and establishment wage differentials: a breakdown of the relationship (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:cesptp:hal-00833872

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