Flexible Work Systems and the Structure of Wages: Evidence from Matched Employer-Employee Data
44 Pages Posted: 11 Sep 2001
Date Written: August 2001
A growing theoretical and empirical literature is concerned with the effects of flexible workplace systems or High Performance Work Organizations (HPWOs) on wages. Existing theoretical literature suggests that these forms of organization should lead to higher inequality across firms, increased segregation of labor markets and decreased within-firm inequality. This paper makes use of a new employer-employee-linked data set for Germany to examine the labor market effects of flexible workplace systems. Our results suggest that HPWOs increase both across and within firm inequality. We do not find evidence, however, that HPWOs affect their employment structure.
Keywords: Organizational Change, Wages, Employment, Linked-Employer-Employee Data Set, Inequality
JEL Classification: J51, J65
Suggested Citation: Suggested Citation