The dynamics of wage dispersion between firms: the role of firm entry and exit

Benedikt Schröpf
Additional contact information
Benedikt Schröpf: FAU

Journal for Labour Market Research, 2023, vol. 57, Article 1

Abstract: "Although wage inequality is an important and widely studied issue, the literature is vastly silent on the relationship between firm entry and exit and the wage dispersion between firms. Using a 50% random administrative sample of West German establishments over the period 1976–2017, I study wage dispersion dynamics between and within the groups of entering, exiting, and incumbent establishments by examining the distribution of average wages across establishments. The results show that entering establishments became increasingly unequal over time, thereby contributing to the rise in wage dispersion between establishments. However, exit rates of young and low-wage establishments have dampened this effect. These findings suggest considering the consequences for wage inequality when designing and assessing policy instruments for firm entry and exit." (Author's abstract, IAB-Doku, © Springer-Verlag) ((en))

Keywords: Bundesrepublik Deutschland; Westdeutschland; Betriebsstilllegung; Determinanten; Entwicklung; IAB-Betriebs-Historik-Panel; Lohndifferenzierung; Lohnunterschied; Niedriglohnbereich; Unternehmen; Unternehmensgründung; Zu- und Abgänge; 1976-2017 (search for similar items in EconPapers)
JEL-codes: J31 L26 M13 (search for similar items in EconPapers)
Date: 2023-01-06
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://doi.org/10.1186/s12651-022-00326-3

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iab:iabjlr:v:57:p:art.01

Ordering information: This journal article can be ordered from
https://www.springer.com/economics/journal/12651

DOI: 10.1186/s12651-022-00326-3

Access Statistics for this article

Journal for Labour Market Research is currently edited by Joachim Möller et al.

More articles in Journal for Labour Market Research from Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany] Contact information at EDIRC.
Bibliographic data for series maintained by IAB, Geschäftsbereich Wissenschaftliche Fachinformation und Bibliothek ().