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Content archived on 2024-05-21

Pay inequalities and economic performance

Objective

Do large wage inequalities boost on hinder firms' economic and employment performance?
To answer this question we look at two key functions of wage inequalities: allocating labour across labour markets, and as a part of firms' personnel management, training and industrial relations policies.
It has long been suspected that the wage differences that would encourage mobility and assist in reducing unemployment conflict with the demands on personnel management to retain and motivate staff within the enterprise, and with those of cooperative workplace relations. But these hypotheses have never been tested simultaneously across a rich cross-section of advanced industrial countries. We shall use the micro-data from the 1995 European Structure of Earnings Survey, combined with other data sources. To facilitate data access our consortium involves eight statistical offices involved in the survey. We shall extend our comparison to Japan and the US.

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Topic(s)

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Call for proposal

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Funding Scheme

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Coordinator

LONDON SCHOOL OF ECONOMICS AND POLITICAL SCIENCE
EU contribution
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Address
Houghton Street
LONDON
United Kingdom

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Total cost

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Participants (13)

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