Wages, Employer Costs, and Employee Performance in the Firm

Harry Holzer

ILR Review, 1990, vol. 43, issue 3, 147-S-164-S

Abstract: Analyzing data from a 1982 survey of firms, the author finds evidence that firms' wage levels are positively associated with the previous experience of new hires, the tenure of employees with the firm, managers' perceptions of employee productivity, and managers' perceptions of the ease of hiring qualified workers; they are negatively associated with job vacancy rates and training time. Although the magnitudes of some of these relationships are not large, in combination they suggest that high-wage firms can sometimes offset more than half of their higher wage costs through improved productivity and lower hiring and turnover costs. The effects are generally stronger for firms that have chosen high wage levels than for firms in which unions have imposed high wage levels.

Date: 1990
References: Add references at CitEc
Citations: View citations in EconPapers (18)

Downloads: (external link)
http://ilr.sagepub.com/content/43/3/147-S.abstract (text/html)

Related works:
Working Paper: Wages, Employer Costs, and Employee Performance in the Firm (1989)
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:sae:ilrrev:v:43:y:1990:i:3:p:147-s-164-s

Access Statistics for this article

More articles in ILR Review from Cornell University, ILR School
Bibliographic data for series maintained by SAGE Publications ().