How Selective Are Real Wage Cuts? A Micro-Analysis Using Linked Employer-Employee Data
Hirsch B, Zwick T (2015)
Publication Language: English
Publication Type: Journal article
Publication year: 2015
Journal
Publisher: Blackwell Publishing Inc.
Book Volume: 29
Pages Range: 327-347
Journal Issue: 4
DOI: 10.1111/labr.12063
Abstract
Using linked employer–employee panel data for Germany, we investigate whether firms implement real wage reductions in a selective manner. In line with insider–outsider and several strands of efficiency wage theory, we find strong evidence for selective wage cuts with high‐productivity workers being spared even when controlling for permanent differences in firms' wage policies. In contrast to some recent contributions stressing fairness considerations, we also find that wage cuts increase wage dispersion among peers rather than narrowing it. Notably, the same selectivity pattern shows up when restricting our analysis to firms covered by collective agreements or having a works council.
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Germany (DE)How to cite
APA:
Hirsch, B., & Zwick, T. (2015). How Selective Are Real Wage Cuts? A Micro-Analysis Using Linked Employer-Employee Data. Labour, 29(4), 327-347. https://dx.doi.org/10.1111/labr.12063
MLA:
Hirsch, Boris, and Thomas Zwick. "How Selective Are Real Wage Cuts? A Micro-Analysis Using Linked Employer-Employee Data." Labour 29.4 (2015): 327-347.
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