Empirical studies examining the impact of intra-firm wage dispersion on firm performance report extremely mixed results. Yet, almost all of the studies implicitly assume that there is a uniform relationship between wage dispersion and firm performance across all types of firms. In contrast, we...

This paper reports the results of a comparison of employment adjustment in Japan, the United States, and four major EC countries. Output and real wages are used in explaining the optimal employment level and change in employment. Short- and long-run responses to alterations of the exogenous...

This article analyzes whether unemployment has an effect on the splitting of a marital relationship. The study uses 40000 observations on unemployment spells and marital status during the period from 1987 to 1996. Random effects probit and conditional likelihood logit models for panel data are...

Explicit profit sharing and rent-seeking as a form of efficiency wage are theoretically closely related though their respective literatures have made little contact. A number of theoretical models provide good foundations for both kinds of sharing. Attempts to quantify the "effects" of sharing,...

We estimate the effects of R&D on firms' credit ratings and on financial distress. The main purpose is the comparison of firms in Western Germany and Eastern Germany as a transitional economy. Innovative activity has a positive impact on firm value proxied by ratings in Western Germany, but a...

We examine the hypothesis that flexible work organization involves greater skill requirements and, hence, an increased likelihood of receiving employer provided training. The analysis is based on unique linked employer‐employee data from Germany for the years 2012, 2014 and 2016 (12,924 pooled...

This paper examines the empirical determinants of piece rates and profit sharing schemes. Establishment data from Germany confirm the importance of industrial relations climate. The presence of collective agreements makes profit sharing less likely. Yet, the presence of works councils makes both...

Theory presents two channels through which profit sharing can cause workers to increase their coworkers' productivity: greater cooperation and increased peer pressure. This paper argues that these generate opposite influences on coworker relations, and that which dominates varies according to...