Firm Size and the Relationship Between Wage Dispersion and Firm Performance

Authors

  • Homero Zambrano ITESM

DOI:

https://doi.org/10.25071/1874-6322.30579

Abstract

A simple theoretical model explains the divergent empirical results concerning the effect of wage dispersion on firm performance. First, causality in the relationship is clarified. Then, through the model, it is shown that firm performance is non-monotonic with respect to wage dispersion. Likewise, it is shown that large firms are more likely to benefit from a dispersed wage structure than small firms.

Author Biography

Homero Zambrano, ITESM

Department of Finance, Monterrey Institute of Technology (ITESM), main campus Assistant professor

Published

2010-05-04

How to Cite

Zambrano, H. (2010). Firm Size and the Relationship Between Wage Dispersion and Firm Performance. Journal of Income Distribution®, 19(2). https://doi.org/10.25071/1874-6322.30579

Issue

Section

Articles