Intra-firm wage dispersion and fîrm performance: a review and empirical tests on Belgian data

The objective of this paper is twofold. First, we survey the theoretical and empirical literature regarding the impact of intra-firm wage dispersion on firm performance. Next, we examine the nature of this relationship in the Belgian private sector, using a unique combination of two large-scale data sets (i.e. the 1995 "Structure of Earnings Survey" and "Structure of Business Survey"). We measure firm performance both in financial and productivity terms. Moreover, three unconditional indicators are used to estimate intrafirm wage dispersion. Empirical results support the existence of a signifi... Mehr ...