TY  - BOOK
AU  - Lallemand,Thierry
AU  -  Plasman,Robert
AU  -  Rycx,François
TI  - Does Wage Dispersion Encourage Firm Performance?
PY  - 2005///.
							
N1  - 58
N2  - Workers are used to comparing their wages with those of their co-workers. As a result, it is argued that the dispersion of wages within a firm has a significant impact on individual workers’ productivity and thus on average firm performance. However, there is no consensus over evidence for a relationship between wage dispersion and firm performance. On the one hand, “tournament” models (e.g., Lazear and Rosen 1981) stress the positive influence of wage inequality within a firm on workers’ commitment, suggesting the implementation of a differentiated reward structure and the award of the largest rewards to the most productive workers. Meanwhile, other theories argue for some degree of wage compression within a firm by emphasizing the importance of fairness and cooperation among the workforce (e.g., Akerlof and Yellen 1990; Levine 1991). The aim of this paper is to provide a critical summary of the literature regarding the interaction between intra-firm wage dispersion and firm performance. Particular attention is devoted to empirical results obtained for the Belgian economy
UR  - https://shs.cairn.info/journal-reflets-et-perspectives-de-la-vie-economique-2005-2-page-63?lang=en&redirect-ssocas=7080
ER  -