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Pay Spread and Skewness. Employee Effort and Firm Productivity

  • Bingley, P.
  • Eriksson, T

We test predictions from theories of tournament, fairness and tastes for skewness about the effects of pay spread and skewness on employee effort and firm productivity. The data come from the population of 6,501 medium-to-large sized Danish private sector firms matched with all their employees during 1992-95. Potential simultaneity problems are addressed by instrumental variables provided by institutional variation in the income tax system.

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Paper provided by Aarhus School of Business - Department of Economics in its series Papers with number 01-2.

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Length: 25 pages
Date of creation: 2001
Date of revision:
Handle: RePEc:fth:aascbu:01-2
Contact details of provider: Postal: Department of Economics, Faculty of Business Administration. The Aarhus School of Business. Fuglesangs Alle 4. DK- 8210 Aarhus V - Denmark
Phone: +45 89 486396
Fax: +45 8615 5175
Web page: http://www.asb.dk/about/departments/nat.aspx

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