Ownership and Pay in Britain

36 Pages Posted: 4 Sep 2015

See all articles by Andrew Pendleton

Andrew Pendleton

Durham University Business School

Alex Bryson

UCL ; National Institute of Economic and Social Research (NIESR)

Howard Gospel

King's College London - The Management Centre

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Abstract

Drawing on principal-agent perspectives on corporate governance, this paper examines whether employees' hourly pay is linked to ownership dispersion. Using linked workplace-worker data from the British Workplace Employment Relations Survey (WERS) 2011, we find average hourly pay is higher in dispersed ownership workplaces. The raw gap of 30 log points falls to 8 log points when we control for differences in worker and workplace characteristics. The premium is constant across most of the wage distribution, but falls a little at the 90th percentile to become statistically non-significant. This contrasts with earlier papers which indicate that higher level employees are the primary beneficiaries of higher pay from dispersed ownership.

Keywords: ownership structure, corporate governance, principal agent, pay

JEL Classification: G3, G32, G31

Suggested Citation

Pendleton, Andrew and Bryson, Alex and Gospel, Howard, Ownership and Pay in Britain. IZA Discussion Paper No. 9223, Available at SSRN: https://ssrn.com/abstract=2655244

Andrew Pendleton (Contact Author)

Durham University Business School ( email )

Mill Hill Lane
Durham, Durham DH1 3LB
United Kingdom

Alex Bryson

UCL ( email )

20 Bedford Way
London, WC1H 0AL
United Kingdom

HOME PAGE: http://https://iris.ucl.ac.uk/iris/browse/profile?upi=ABRYS65

National Institute of Economic and Social Research (NIESR) ( email )

2 Dean Trench Street
Smith Square
London, SW1P 3HE
United Kingdom

HOME PAGE: http://www.niesr.ac.uk/staff/staffdetail.php?StaffID=307

Howard Gospel

King's College London - The Management Centre ( email )

150 Stamford Street
London, SE1 9NN
United Kingdom
44 020 78484121 (Phone)

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