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

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  • Bauer, Thomas K.

    () (RWI)

  • Bender, Stefan

Abstract

A growing theoretical and empirical literature is concerned with the effects of flexible workplace systems or High Performance Work Organizations (HPWOs) on wages. Existing theoretical literature suggests that these forms of organization should lead to higher inequality across firms, increased segregation of labor markets and decreased within-firm inequality. This paper makes use of a new employer-employee-linked data set for Germany to examine the labor market effects of flexible workplace systems. Our results suggest that HPWOs increase both across and within firm inequality. We do not find evidence, however, that HPWOs affect their employment structure.

Suggested Citation

  • Bauer, Thomas K. & Bender, Stefan, 2001. "Flexible Work Systems and the Structure of Wages: Evidence from Matched Employer-Employee Data," IZA Discussion Papers 353, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp353
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    Citations

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    Cited by:

    1. Fitzenberger, Bernd & Hübler, Olaf & Kraft, Kornelius, 2008. "Flexibilisierungspotenziale bei heterogenen Arbeitsmärkten : eine Einführung (Potentials for increasing flexibility in heterogeneous labour markets : an introduction)," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 41(2/3), pages 95-116.
    2. Bellmann, Lutz & Caliendo, Marco & Hujer, Reinhard & Radic, Dubravko, 2002. "Beschäftigungswirkungen technisch-organisatorischen Wandels : eine mikroökonometrische Analyse mit dem Linked IAB-Panel (Technological and organisational change and its effects on employment : a micro," Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 35(4), pages 506-522.
    3. Jin, Xin, 2014. "Flattening Firms and Wage Distribution," MPRA Paper 58485, University Library of Munich, Germany.
    4. Kuhn, Dieter, 2011. "Delayering and Firm Performance: Evidence from Swiss firm-level Data," Working papers 2011/02, Faculty of Business and Economics - University of Basel.
    5. repec:iab:iabzaf:v:41:i:2/3:p:95-116 is not listed on IDEAS
    6. Uwe Jirjahn & Kornelius Kraft, 2010. "Teamwork And Intra-Firm Wage Dispersion Among Blue-Collar Workers," Scottish Journal of Political Economy, Scottish Economic Society, vol. 57(4), pages 404-429, September.
    7. Paolo Ghinetti, 2007. "Technology Innovations, Organisational Changes and Firms’ Wages in Italy," Working Papers 111, SEMEQ Department - Faculty of Economics - University of Eastern Piedmont.
    8. Rosemary Batt & Hiroatsu Nohara & Hyunji Kwon, 2010. "Employer Strategies and Wages in New Service Activities: A Comparison of Co-ordinated and Liberal Market Economies," British Journal of Industrial Relations, London School of Economics, vol. 48(2), pages 400-435, June.
    9. Andries de Grip & Inge Sieben, 2005. "The effects of human resource management on small firms' productivity and employees' wages," Applied Economics, Taylor & Francis Journals, vol. 37(9), pages 1047-1054.
    10. Boucekkine, Raouf & Crifo, Patricia, 2008. "Human Capital Accumulation And The Transition From Specialization To Multitasking," Macroeconomic Dynamics, Cambridge University Press, vol. 12(03), pages 320-344, June.
    11. 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.
    12. Hans K. Hvide & Tore Leite, 2003. "A Theory of Capital Structure with Strategic Defaults and Priority Violations," Finance 0311003, EconWPA.
    13. Xin Jin, 2014. "Flattening Firms and Wage Distribution," Working Papers 0414, University of South Florida, Department of Economics.
    14. repec:iab:iabmit:v:36:i:4:p:599-615 is not listed on IDEAS
    15. 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).
    16. Spyros Arvanitis & Euripidis N. Loukis, 2009. "Employee education, information and communication technology, workplace organization and trade," KOF Working papers 09-234, KOF Swiss Economic Institute, ETH Zurich.
    17. repec:iab:iabmit:v:36:i:4:p:493-508 is not listed on IDEAS
    18. repec:iab:iabmit:v:36:i:3:p:257-270 is not listed on IDEAS
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    20. Auriol, Emmanuelle & Renault, Régis, 2000. "The Costs and Benefits of Symbolic Differentiation in the Work Place," IDEI Working Papers 101, Institut d'Économie Industrielle (IDEI), Toulouse, revised 2002.

    More about this item

    Keywords

    linked-employer-employee data set; organizational change; wages; employment; inequality;

    JEL classification:

    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior

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