Worker flows, job flows and establishment wage differentials : analyzing the case of France
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 non-farm 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.
|Date of creation:||Apr 2011|
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|Note:||View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00593952|
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