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

Richard Duhautois, Fabrice Gilles () and Héloïse Petit
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Fabrice Gilles: CEE - Centre d'études de l'emploi - M.E.N.E.S.R. - Ministère de l'Education nationale, de l’Enseignement supérieur et de la Recherche - Ministère du Travail, de l'Emploi et de la Santé, EQUIPPE - Economie Quantitative, Intégration, Politiques Publiques et Econométrie - Université de Lille, Sciences et Technologies - Université de Lille, Sciences Humaines et Sociales - PRES Université Lille Nord de France - Université de Lille, Droit et Santé

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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
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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