La dispersion salariale stimule-t-elle la performance d'une firme ?
AbstractWorkers are used to compare their wages with those of their co-workers. As a result, it is argued that the dispersion of wages within a firm has a significant impact on the individual workers?productivity and thus on the average firm performance. However, there is no consensus about the sign and shape of the relationship between wage dispersion and firm performance. On the one hand, the ¿tournament¿ models (e.g., Lazear and Rosen, 1981) stress the positive influence of wage inequality within a firm on the workers?effort. These models suggest the implementation of a differentiated prize structure and to award the largest prize to the most productive worker. On the other hand, other theories argue for some degree of wage compression within a firm by emphasising the importance of fairness and cooperation among the workforce (e.g., Akerlof and Yellen, 1990 ; Levine, 1991). The aim of this paper is to provide a critical summary of the literature regarding the interaction between intra-firm wage dispersion and firm performance. Particular attention is devoted to the empirical results that have been obtained for the Belgian economy. "
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Bibliographic InfoArticle provided by De Boeck Université in its journal Reflets et perspectives de la vie économique.
Volume (Year): XLIV (2005)
Issue (Month): 2 ()
Contact details of provider:
Web page: http://www.cairn.info/revue-reflets-et-perspectives-de-la-vie-economique.htm
Belgium; wage dispersion; firm performance; personnel economics;
Other versions of this item:
- Thierry Lallemand & Robert Plasman & François Rycx, 2005. "La dispersion salariale stimule-t-elle la performance d'une firme?," ULB Institutional Repository 2013/7846, ULB -- Universite Libre de Bruxelles.
- Thierry Lallemand & Robert Plasman & François Rycx, 2005. "La dispersion salariale stimule-t-elle la performance d'une firme?," ULB Institutional Repository 2013/8741, ULB -- Universite Libre de Bruxelles.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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ULB Institutional Repository
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