Title: Effects of Firm Performance and Technology on Wages: Evidence from Cross-Sectional Matched Worker-Firm Data
Abstract: Recent empirical studies on wage determination stress the existence of inter-industry wage differentials for employees with comparable qualifications and performing similar tasks. This paper investigates the impact of firm performance and technology use on worker wages in the Netherlands manufacturing industry for the years 1979, 1985 and 1989. Our empirical analysis uses cross-sectional worker-firm data which are created by joining the Netherlands Wage Survey, the Production Survey, the R & D Survey and the Survey of Manufacturing Technology. The results show that firms that have the highest R & D intensity or that have the highest labor productivity pay their workers the highest wages, when controls for worker quality are included. Finally we find that the use of manufacturing technology has no significant influence on the wages of workers.
Publication Year: 1996
Publication Date: 1996-06-01
Language: en
Type: article
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Cited By Count: 2
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