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Within-firm Pay Inequality and Firm Performance

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dc.contributor.authorDe Vito, Antonio
dc.contributor.authorGómez, Juan Pedro
dc.contributor.rorhttps://ror.org/02jjdwm75
dc.date.accessioned2025-06-25T11:11:25Z
dc.date.available2025-06-25T11:11:25Z
dc.date.issued2022-03
dc.description.abstractUsing a unique dataset with administrative information on over two million matched employeremployee-year observations in Italy over the 1994-2000 period, we examine the causal effect of a quasi-exogenous shock to within-firm pay inequality on firm performance. Consistent with the fair wage-effort hypothesis, pay dispersion increases among firms whose workers show lower sensitivity to pay inequality. These firms outperform similar firms whose workers show higher sensitivity to pay inequality. Our results unveil a shadow cost of relative wage concerns for firms and the potential adverse effects of imposing an ad hoc limit on firms’ pay dispersion.
dc.description.peerreviewedyes
dc.description.statusPublished
dc.formatapplication/pdf
dc.identifier.citationDe Vito, Antonio and Gomez, Juan-Pedro, Within-firm Pay Inequality and Firm Performance (November 14, 2023). http://dx.doi.org/10.2139/ssrn.4008989
dc.identifier.doihttp://dx.doi.org/10.2139/ssrn.4008989
dc.identifier.urihttps://hdl.handle.net/20.500.14417/3819
dc.language.isoen
dc.page.total59
dc.relation.departmentFinance
dc.relation.entityIE University
dc.relation.schoolIE Business School
dc.rightsAttribution-NonCommercial-NoDerivatives 4.0 International
dc.rights.accessRightsinfo:eu-repo/semantics/openAccess
dc.rights.urihttps://creativecommons.org/licenses/by-nc-nd/4.0/deed.en
dc.subject.keywordPay inequality
dc.subject.keywordFirm performance
dc.subject.keywordFair wage-effort hypothesis
dc.subject.keywordUnions
dc.titleWithin-firm Pay Inequality and Firm Performance
dc.typeinfo:eu-repo/semantics/article
dc.version.typeinfo:eu-repo/semantics/publishedVersion
dspace.entity.typePublication
relation.isAuthorOfPublication8af307ca-1d75-4ed1-b43a-b06997510ff9
relation.isAuthorOfPublication4c2d4d21-bbf8-4935-96bc-6475146ceea7
relation.isAuthorOfPublication.latestForDiscovery8af307ca-1d75-4ed1-b43a-b06997510ff9
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