This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Cohesiveness, Productivity, and Wage Dispersion

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
David Levine (University of California, Berkeley)

Additional information is available for the following registered author(s):

Abstract

When work groups support the goals of the firm, firms will want to narrow wage dispersion in order to increase group cohesiveness and productivity. This narrowing of wage differentials has several implications: (1) Firms will pay wages that vary less than marginal productivity; (2) Firms that must pay the high end of their wage distribution a particularly high wage will pay all workers particularly high wages; (3) The market ignores the rent that egalitarian wages provide to low-wage workers, and the rent will be under-provided in equilibrium. At the margin, increasing the number of workers in cohesive firms and/or increasing wages for the low end of the wage distribution will increase the total amount of rents, raising national output.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help file. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://repositories.cdlib.org/cgi/viewcontent.cgi?article=1042&context=iir
File Format: application/pdf
File Function:
Download Restriction: no

Publisher Info
Paper provided by Institute of Industrial Relations, UC Berkeley in its series Institute for Research on Labor and Employment, Working Paper Series with number 1042.

Download reference. The following formats are available: HTML, plain text, BibTeX, RIS (EndNote), ReDIF
Length:
Date of creation: 01 Jan 1989
Date of revision:
Handle: RePEc:cdl:indrel:1042

Note: oai:cdlib1:iir-1042
Contact details of provider:
Postal: 2521 Channing Way # 5555, Berkeley, CA 94720-5555
Web page: http://repositories.cdlib.org/iir/iirwps/
More information through EDIRC

For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).

Related research
Keywords: Levine productivity wage dispersion

Other versions of this item:

References listed on IDEAS
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.:
  1. Frank, Robert H, 1984. "Are Workers Paid Their Marginal Products?," American Economic Review, American Economic Association, vol. 74(4), pages 549-71, September. [Downloadable!] (restricted)
  2. Andrew Weiss, 1987. "Incentives and Worker Behavior: Some Evidence," NBER Working Papers 2194, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. Jonathan S. Leonard, 1987. "Carrots and Sticks: Pay, Supervision and Turnover," NBER Working Papers 2176, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
Full references

Cited by:
(explanations, 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.)

  1. Fredrik Heyman, 2005. "Pay inequality and firm performance: evidence from matched employer--employee data," Applied Economics, Taylor and Francis Journals, vol. 37(11), pages 1313-1327, June. [Downloadable!] (restricted)
    Other versions:
  2. Richard Belfield & David Marsden, 2002. "Matchmaking: the Influence of Monitoring Environments on the Effectiveness of Performance Pay Systems," CEP Discussion Papers 0543, Centre for Economic Performance, LSE. [Downloadable!]
  3. Dominique Demougin & Claude Fluet, 2003. "Inequity Aversion in Tournament," CIRANO Working Papers 2003s-18, CIRANO. [Downloadable!]
    Other versions:
  4. David Levine, 1991. "Public Policy Implications of Imperfections in the Market for Worker Participation," Institute for Research on Labor and Employment, Working Paper Series 1055, Institute of Industrial Relations, UC Berkeley. [Downloadable!]
  5. Granqvist, Lena & Regnér, Håkan, 2006. "The outcome of individual wage bargaining and the influence of managers' bargaining power: evidence from union data," Working Paper Series 3/2006, Swedish Institute for Social Research. [Downloadable!]
  6. Bingley, Paul & Eriksson, Tor, 2001. "Pay Spread and Skewness, Employee Effort and Firm Productivity," Working Papers 01-2, University of Aarhus, Aarhus School of Business, Department of Economics. [Downloadable!]
    Other versions:
  7. Nils Braakmann, 2008. "Intra-firm wage inequality and firm performance – First evidence from German linked employer-employee-data," Working Paper Series in Economics 77, University of Lüneburg, Institute of Economics. [Downloadable!]
  8. Stephanie Lluis, . "Human Resource Management Practices and Wage Dispersion in U.S. Establishments," Working Papers 0603, Industrial Relations Center, University of Minnesota (Twin Cities Campus). [Downloadable!]
  9. Lundborg, Per, 2007. "Which Wage Dispersion Matters to Firms' Performance?," Working Paper Series 12/2007, Swedish Institute for Social Research. [Downloadable!]
  10. Jirjahn, Uwe & Kraft, Kornelius, 2008. "Teamwork and Intra-Firm Wage Dispersion among Blue-Collar Workers," IZA Discussion Papers 3291, Institute for the Study of Labor (IZA). [Downloadable!]
  11. Erica Groshen & David Levine, 1998. "The rise and decline(?) of U.S. internal labor markets," Research Paper 9819, Federal Reserve Bank of New York. [Downloadable!]
Statistics
Access and download statistics

Did you know? IDEAS is not the only service displaying RePEc data. Choose on RePEc which service fits your needs best.

This page was last updated on 2008-9-20.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.