Firm Size and the Relationship Between Wage Dispersion and Firm Performance
DOI:
https://doi.org/10.25071/1874-6322.30579Abstract
A simple theoretical model explains the divergent empirical results concerning the effect of wage dispersion on firm performance. First, causality in the relationship is clarified. Then, through the model, it is shown that firm performance is non-monotonic with respect to wage dispersion. Likewise, it is shown that large firms are more likely to benefit from a dispersed wage structure than small firms.Downloads
Published
2010-05-04
How to Cite
Zambrano, H. (2010). Firm Size and the Relationship Between Wage Dispersion and Firm Performance. Journal of Income Distribution®, 19(2). https://doi.org/10.25071/1874-6322.30579
Issue
Section
Articles