Internal wage structures and organizational performance

Beaumont, P.B. and Harris, R.I.D. (2003) Internal wage structures and organizational performance. British Journal of Industrial Relations, 41(1), pp. 53-70. (doi:10.1111/1467-8543.00261)

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This paper considers whether a hierarchical or compressed wage structure is positively associated with relatively high levels of organizational performance. To date, there has been little empirical research in this area (especially in the UK). Thus we present an operational measure of a compressed/hierarchical wage structure, using UK manufacturing micro–data in five industrial sectors, and examine its relationship with labour productivity. We find that the wage compression argument holds in one sector but not for the majority of sectors and that taking into account other, intra–industry characteristics, namely size and ownership differences, further weakens the relationship.

Item Type:Articles
Glasgow Author(s) Enlighten ID:Beaumont, Professor Phillip and Harris, Prof Richard
Authors: Beaumont, P.B., and Harris, R.I.D.
Subjects:H Social Sciences > HD Industries. Land use. Labor
College/School:College of Social Sciences > Adam Smith Business School > Economics
Journal Name:British Journal of Industrial Relations
Publisher:Wiley-Blackwell Publishing Ltd.
ISSN (Online):1467-8543
Published Online:21 March 2003

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