Flexible Wages Systems and the Structure of Wages: Evidence from Matched Employer-Employee Data

Thomas Bauer () and Stefan Bender ()

No 2980, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: A growing theoretical and empirical literature is concerned with the effects of flexible workplace systems or High Performance Work Organizations (HPWOs) on wages. Existing theoretical literature suggests that these forms of organization should lead to higher inequality across firms, increased segregation of labour markets and decreased within-firm inequality. This Paper makes use of a new employer-employee-linked data set for Germany to examine the labour market effects of flexible workplace systems. Our results suggest that HPWOs increase both across and within firm inequality. We do not find evidence, however, that HPWOs affect their employment structure.

Keywords: Organizational change; Employment; Linked employer-employee data set; Inequality (search for similar items in EconPapers)
JEL-codes: J30 L20 O30 (search for similar items in EconPapers)
Date: 2001-09
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (30)

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