The impact of wage dispersion on labor productivity: evidence from Finnish workers

Research output: Chapter in Book/Report/Conference proceedingChapterScientificpeer-review

Abstract

Using an extensive dataset on Finnish workers during the years 1990-2002, we analyze the relation between dispersion of wages within plant and average sales per worker. This relation is quadratic when dispersion is conditioned on workers observable characteristics. W also find positive and significant relation between unconditional dispersion of wages within plant and value added per hour worked, while we find a non-significant relation between conditional wage dispersion and value added per hours worked. Results indicate that the incentive effect of wage dispersion dominates fairness or sabotage considerations.
Original languageEnglish
Title of host publicationNew Analyses of Worker Well-Being
EditorsSolomon W. Polachek, Konstantinos Tatsiramos
Number of pages26
Place of PublicationBingley
PublisherEmerald
Publication date2013
Pages77-103
ISBN (Print)978-1-78350-056-7
Publication statusPublished - 2013
MoE publication typeA3 Book chapter

Publication series

NameResearch in Labor Economics
PublisherEmerald
Volume38
ISSN (Print)0147-9121

Keywords

  • 511 Economics

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  • Cite this

    Arranz, A. M. L. (2013). The impact of wage dispersion on labor productivity: evidence from Finnish workers. In S. W. Polachek, & K. Tatsiramos (Eds.), New Analyses of Worker Well-Being (pp. 77-103). (Research in Labor Economics ; Vol. 38). Emerald.