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Flexible Work Systems and the Structure of Wages: Evidence from Matched Employer-Employee Data

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Author Info
Bauer, Thomas K. () (IZA, Bonn, University of Bonn and CEPR, London)
Bender, Stefan (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg)

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Abstract

A growing literature is concerned with the effects of flexible workplace systems or High Performance Work Organizations (HPWOs) on wages. This paper makes use of a new employer-employee-linked panel data set for Germany to examine the effects of adopting HPWOs on wages as well as on the wage structure within firms. The empirical results suggest that, depending on the particular practice, flexible workplace systems benefit employees through higher wages. HPWOs further increase within firm wage inequality through a relative increase in the wages at the upper parts of an establishment’s wage distribution.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 353.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length: 45 pages
Date of creation: Sep 2001
Date of revision: Jul 2002
Handle: RePEc:iza:izadps:dp353

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Related research
Keywords: Organizational change; wages; employment; linked-employer-employee data set; inequality;

Other versions of this item:

Find related papers by JEL classification:
L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
O3 - Economic Development, Technological Change, and Growth - - Technological Change

This paper has been announced in the following NEP Reports:

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.:
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    Other versions:
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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. Andries de Grip & Inge Sieben, 2005. "The effects of human resource management on small firms’ productivity and employees’ wages," Applied Economics, Taylor and Francis Journals, vol. 37(9), pages 1047-1054, May. [Downloadable!] (restricted)
  2. Bauer, Thomas K., 2004. "High Performance Workplace Practices and Job Satisfaction: Evidence from Europe," IZA Discussion Papers 1265, Institute for the Study of Labor (IZA). [Downloadable!]
  3. Hans K. Hvide & Tore Leite, 2003. "A Theory of Capital Structure with Strategic Defaults and Priority Violations," Finance 0311003, EconWPA. [Downloadable!]
    Other versions:
  4. Grip,Andries,de & Sieben,Inge, 2004. "The Effects of Human Resource Management on Workers' Wages and Firm Productivity," Research Memoranda 001, Maastricht : ROA, Research Centre for Education and the Labour Market. [Downloadable!]
  5. 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!]
  6. Bauer, Thomas K. & Bender, Stefan, 2002. "Technological Change, Organizational Change, and Job Turnover: A Descriptive Analysis of Germany," 10th International Conference on Panel Data, Berlin, July 5-6, 2002 A1-3, International Conferences on Panel Data. [Downloadable!]
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