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Teamwork and Intra-Firm Wage Dispersion among Blue-Collar Workers

  • Jirjahn, Uwe

    ()

    (University of Trier)

  • Kraft, Kornelius

    ()

    (TU Dortmund)

Using data on a sample of manufacturing establishments in Germany, we find that the use of self-managed teams is associated with increased intra-firm wage inequality between skilled and unskilled blue-collar workers. We also show that moderating factors play an important role. While teamwork interacts positively with employer-provided further training and a production technology of the most recent vintage, it interacts negatively with the age of the establishment and the coverage by a collective bargaining agreement.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3291.

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Length: 39 pages
Date of creation: Jan 2008
Handle: RePEc:iza:izadps:dp3291
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