Wages, employer costs, and employee performance in the firm
AbstractAnalyzing data from a 1982 survey of firms, the author finds evidence that firms' wage levels are positively associated with the previous experience of new hires, the tenure of employees with the firm, managers' perceptions of employee productivity, and managers' perceptions of the ease of hiring qualified workers; they are negatively associated with job vacancy rates and training time. Although the magnitudes of some of these relationships are not large, in combination they suggest that high-wage firms can sometimes offset more than half of their higher wage costs through improved productivity and lower hiring and turnover costs. The effects are generally stronger for firms that have chosen high wage levels than for firms in which unions have imposed high wage levels. (Abstract courtesy JSTOR.)
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Bibliographic InfoArticle provided by ILR Review, Cornell University, ILR School in its journal ILR Review.
Volume (Year): 43 (1990)
Issue (Month): 3 (February)
Postal: 381 Ives East, Cornell University, Ithaca, NY 14853-3901
Other versions of this item:
- Harry J. Holzer, 1989. "Wages, Employer Costs, and Employee Performance in the Firm," NBER Working Papers 2830, National Bureau of Economic Research, Inc.
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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