Does the Position in Business Group Hierarchies Affect Workers' Wages?

Konferenzbeitrag

We merge firm-level data on ownership linkages with administrative data on German workers to analyze how the position in a business group hierarchy affects workers' wages. To acknowledge that ownership linkages are not onedirectional, we propose an index to measure hierarchical distance to the ultimate owner. After controlling for unobserved heterogeneity and selection into the business group hierarchy, we find a positive effect of larger hierarchical distance to the ultimate owner of a business group on workers' wages. This result is in line with a monitoring-based theory of business group hierarchies, in which larger hierarchical distance to the ultimate owner is associated with lower monitoring efficiency and thus higher wage payments to incentivize workers

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Beiträge zur Jahrestagung des Vereins für Socialpolitik 2021: Climate Economics

Classification and Topics

• Classification: Wirtschaft ; Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models ; Wage Level and Structure; Wage Differentials ; Organization of Production
• Subject: Business groups ; ownership networks ; workers wages ; differencein-difference ; hierarchical distance

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Jahn, Elke ; Egger, Hartmut ; Kornitzky, Stefan
• Event: Veröffentlichung
• (who): ZBW - Leibniz Information Centre for Economics
• (where): Kiel, Hamburg
• (when): 2021

Further information

• Handle: http://hdl.handle.net/10419/242374
• Last update: 10.03.2025, 11:43 AM CET