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Pay inequalities and economic performance

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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Coordinator

LONDON SCHOOL OF ECONOMICS AND POLITICAL SCIENCE

Address

Houghton Street
London

United Kingdom

Administrative Contact

Bryan PEARCE (Mr.)

Participants (13)

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CATHOLIC UNIVERSITY OF SACRED HEART

Italy

CENTRAL STATISTICAL OFFICE

Ireland

CENTRE NATIONAL DE LA RECHERCHE SCIENTIFIQUE

France

ECONOMIC AND SOCIAL RESEARCH INSTITUTE

Ireland

INSEE - INSTITUT NATIONAL DE LA STATISTIQUE ET DES ETUDES ECONOMIQUE

France

INSTITUT NATIONAL DE STATISTIQUE

Belgium

INSTITUTO NACIONAL DE ESTADISTICA

Spain

ISTITUTO NAZIONALE DI STATISTICA

Italy

OFFICE FOR NATIONAL STATISTICS

United Kingdom

STATISTICS DENMARK

Denmark

UNIVERSIDADE DE SANTIAGO DE COMPOSTELA

Spain

UNIVERSITE LIBRE DE BRUXELLES

Belgium

UNIVERSITY OF GREIFSWALD

Germany

Project information

Grant agreement ID: HPSE-CT-1999-00040

  • Start date

    1 July 2000

  • End date

    31 October 2004

Funded under:

FP5-HUMAN POTENTIAL

  • Overall budget:

    € 1 271 650

  • EU contribution

    € 1 090 320

Coordinated by:

LONDON SCHOOL OF ECONOMICS AND POLITICAL SCIENCE

United Kingdom