Dispersion in Wage Premiums and Firm Performance

Pedro Martins

No 8, Working Papers from Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research

Abstract: Using matched employer-employee panel data, we estimate measures of pay dispersion per firm-year that take into account both rm and worker unobserved heterogeneity. Unlike research that controls only for differences in observables, we nd that within-firm pay inequality is significantly associated to lower firm performance.

Keywords: Wage policies; Worker heterogeneity; Fairness (search for similar items in EconPapers)
JEL-codes: D24 J31 M52 (search for similar items in EconPapers)
Date: 2008-05
New Economics Papers: this item is included in nep-bec and nep-lab
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Citations: View citations in EconPapers (48)

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Journal Article: Dispersion in wage premiums and firm performance (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:cgs:wpaper:8

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