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Is Corporate Social Responsibility Associated with Lower Wages?

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  • Karine Nyborg
  • Tao Zhang

Abstract

Firms with a reputation as socially responsible may have an important cost advantage: If workers prefer their employer to be socially responsible, equilibrium wages may be lower in such firms. We explore this hypothesis, combining Norwegian register data with data on firm reputation collected by an employer branding firm. Adjusting for a large set of background variables, we find that the firm’s social responsibility reputation is significantly associated with lower wages. Copyright Springer Science+Business Media Dordrecht 2013

Suggested Citation

  • Karine Nyborg & Tao Zhang, 2013. "Is Corporate Social Responsibility Associated with Lower Wages?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 55(1), pages 107-117, May.
    • Handle: RePEc:kap:enreec:v:55:y:2013:i:1:p:107-117
    DOI: 10.1007/s10640-012-9617-8
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    More about this item

    Keywords

    Self-regulation; Wage differentials; CSR; C51; D21; D64; Q56;
    All these keywords.

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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