Flexible Work Systems and the Structure of Wages: Evidence from Matched Employer-Employee Data

Thomas Bauer () and Stefan Bender ()

No 353, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: A growing theoretical and empirical literature is concerned with the effects of flexible workplace systems or High Performance Work Organizations (HPWOs) on wages. Existing theoretical literature suggests that these forms of organization should lead to higher inequality across firms, increased segregation of labor markets and decreased within-firm inequality. This paper makes use of a new employer-employee-linked data set for Germany to examine the labor market effects of flexible workplace systems. Our results suggest that HPWOs increase both across and within firm inequality. We do not find evidence, however, that HPWOs affect their employment structure.

Keywords: linked-employer-employee data set; organizational change; wages; employment; inequality (search for similar items in EconPapers)
JEL-codes: L2 (search for similar items in EconPapers)
Pages: 46 pages
Date: 2001-09
New Economics Papers: this item is included in nep-eec and nep-ltv
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Citations: View citations in EconPapers (34)

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