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The Dispersion of Employees' Wage Increases and Firm Performance

Bibliographic Data

ID3291979
AuthorsChristian Grund (0000-0002-8951-5670, IZA - Institute of Labor Economics), Niels Westergård‐nielsen (Copenhagen Business School), Niels Westergaard-Nielsen
Year2008
Volume61
Issue4
Pages485-501
Publication date2008-07-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueIndustrial and Labor Relations Review (JOURNAL)
Journal identifiersISSN: 0019-7939 • E-ISSN: 2162-271X
PublisherSAGE Publications Inc (PUBLISHER)
DOI10.1177/001979390806100403
OpenAlexW3121211347
LanguageEN
Citations received6
References cited60

Previous studies examining intra-firm wage dispersion and firm performance have focused on wage levels. The authors of this study argue that for purposes of comparing wage dispersion's positive incentive effects with its adverse morale effects, the dispersion of wage increases is more revealing than the dispersion of wage levels. It is reasonable to expect greater dispersion of wage increases to be associated with higher monetary incentives, but also with increased perceptions of unfairness. The authors' analysis of linked employer-employee data from Denmark for the years 1992-97 shows that the dispersion of wage growth within firms generally had a negative association with firm performance. The results are robust across industries and categories of firm size, but are mainly driven by white-collar rather than blue-collar workers

Dispersion (optics) · Dominance (genetics) · Economics · Efficiency wage · Incentive · Labour economics · Microeconomics · Monetary economics · Order (exchange) · Promotion (chess) · Wage · Wage dispersion · Wage Inequality · Economic Theory and Institutions · Finance

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Unique citing works6
Citations per year0,4
Citation span2011 - 2023 (13)
Citation velocityhistorical
Highly citedNo
Citation typesNeutral: 6

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