Artikel
The dynamics of wage dispersion between firms: The role of firm entry and exit
Although wage inequality is an important and widely studied issue, the literature is vastly silent on the relationship between firm entry and exit and the wage dispersion between firms. Using a 50% random administrative sample of West German establishments over the period 1976-2017, I study wage dispersion dynamics between and within the groups of entering, exiting, and incumbent establishments by examining the distribution of average wages across establishments. The results show that entering establishments became increasingly unequal over time, thereby contributing to the rise in wage dispersion between establishments. However, exit rates of young and low-wage establishments have dampened this effect. These findings suggest considering the consequences for wage inequality when designing and assessing policy instruments for firm entry and exit.
- Language
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Englisch
- Bibliographic citation
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Journal: Journal for Labour Market Research ; ISSN: 2510-5027 ; Volume: 57 ; Year: 2023 ; Issue: 1 ; Pages: 1-29
- Classification
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Wirtschaft
Entrepreneurship
New Firms; Startups
Wage Level and Structure; Wage Differentials
- Subject
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Firm entry
Firm exit
Wage dispersion
Firm dynamics
Germany
- Event
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Geistige Schöpfung
- (who)
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Schröpf, Benedikt
- Event
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Veröffentlichung
- (who)
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Springer
- (where)
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Heidelberg
- (when)
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2023
- DOI
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doi:10.1186/s12651-022-00326-3
- Handle
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Artikel
Associated
- Schröpf, Benedikt
- Springer
Time of origin
- 2023
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