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Worker flows and establishment wage differentials : a breakdown of the relationship

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  • Richard Duhautois

    ()
    (CEE - Centre d'études de l'emploi - Ministère de l'Enseignement supérieur et Recherche - Ministère du Travail, de l'Emploi et de la Santé, ERUDITE - Equipe de Recherche sur l'Utilisation des Données Individuelles Temporelles en Economie - Université Paris-Est Créteil Val-de-Marne (UPEC) : EA437 - Université Paris-Est Marne-la-Vallée (UPEMLV))

  • Fabrice Gilles

    (CEE - Centre d'études de l'emploi - Ministère de l'Enseignement supérieur et Recherche - Ministère du Travail, de l'Emploi et de la Santé, EQUIPPE - ECONOMIE QUANTITATIVE, INTEGRATION, POLITIQUES PUBLIQUES ET ECONOMETRIE - Université Lille I - Sciences et technologies - Université Lille II - Droit et santé - Université Lille III - Sciences humaines et sociales - PRES Université Lille Nord de France)

  • Héloïse Petit

    ()
    (CEE - Centre d'études de l'emploi - Ministère de l'Enseignement supérieur et Recherche - Ministère du Travail, de l'Emploi et de la Santé, CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne)

Abstract

We address the relation between establishment wage differentials and worker flows, i.e., the churning rate and the quit rate. Our analysis is based on a linked employer-employee dataset covering the French private sector from 2002 to 2005. Our estimations support the hypothesis that wage premium is an efficient human resource management tool to stabilize workers: churning rates are lower in high-paying firms due to lower quit rates. We further show that the relation is not linear, and it differs among skill groups and according to establishment size: it is strongest for low-wage levels, for low-skilled workers and in large establishments.

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Bibliographic Info

Paper provided by HAL in its series Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) with number hal-00833872.

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Date of creation: 15 Nov 2012
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Publication status: Published - Presented, Workshop on job and worker flows, 2012, Kyoto, Japan
Handle: RePEc:hal:cesptp:hal-00833872

Note: View the original document on HAL open archive server: http://hal.archives-ouvertes.fr/hal-00833872
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Related research

Keywords: establishment wage effects; worker flows; spline regression; linked employer-employee data;

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Cited by:
  1. Antoni, Manfred & Janser, Markus & Lehmer, Florian, 2014. "The hidden winners of renewable energy promotion : insights into sector-specific wage differentials," IAB Discussion Paper 201412, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

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