• Business
  • Published 2007

Which Wage Dispersion Matters to Firms' Performance?

  title={Which Wage Dispersion Matters to Firms' Performance?},
  author={P. Lundborg},
Research on wage dispersion and firm performance focuses on intra-firm and inter firm effects irrespective of workers’ profession. We extend the analysis by considering dispersion within professions, within and across firms and within professions economy-wide. We find that the intra-firm dispersion of wages, which research so far has focused on, has limited effects on productivity compared to the economy-wide wage dispersion within the professions. As Swedish firms have differentiated wages… CONTINUE READING