Which Wage Dispersion Matters to Firms' Performance?
AbstractResearch on wage dispersion and firm performance focuses on intra-firm and inter firm effects irrespective of workers’ profession. We extend the analysis by considering dispersion within professions, within and across firms and within professions economy-wide. We find that the intra-firm dispersion of wages, which research so far has focused on, has limited effects on productivity compared to the economy-wide wage dispersion within the professions. As Swedish firms have differentiated wages among employees during the last 10-15 years also the economy-wide dispersion within professions has increased thus contributing considerably to the strong performance of the Swedish economy in the late 1990's.
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Bibliographic InfoPaper provided by Swedish Institute for Social Research in its series Working Paper Series with number 12/2007.
Length: 16 pages
Date of creation: 30 Nov 2007
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-12-15 (All new papers)
- NEP-BEC-2007-12-15 (Business Economics)
- NEP-LAB-2007-12-15 (Labour Economics)
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