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.

Sprache
Englisch

Erschienen in
Journal: Journal for Labour Market Research ; ISSN: 2510-5027 ; Volume: 57 ; Year: 2023 ; Issue: 1 ; Pages: 1-29

Klassifikation
Wirtschaft
Entrepreneurship
New Firms; Startups
Wage Level and Structure; Wage Differentials
Thema
Firm entry
Firm exit
Wage dispersion
Firm dynamics
Germany

Ereignis
Geistige Schöpfung
(wer)
Schröpf, Benedikt
Ereignis
Veröffentlichung
(wer)
Springer
(wo)
Heidelberg
(wann)
2023

DOI
doi:10.1186/s12651-022-00326-3
Handle
Letzte Aktualisierung
28.03.2005, 00:48 MESZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Artikel

Beteiligte

  • Schröpf, Benedikt
  • Springer

Entstanden

  • 2023

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