Wage policy patterns at the firm level: an analysis on Italian medium and large firms

Sgobbi, Francesca

doi:10.7749/dinamiacet-iul.wp.2013.05

Cited by 2 publications

(4 citation statements)

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“…The most meaningful finding, and one worth underlining, is that organisations do not have pure compensation policies (Baker et al, 1994) and nor do establishments in particular capitalist economies adopt a single model. Mostly, a dual model prevails among organisations and among economies – it is however an impure duality (Sgobbi, 2013). Although it is an intuitive finding, the fuzzy clustering helped us to quantify the mix of models.…”

Section: Discussionmentioning

confidence: 99%

“…Comparative research on pay systems has explored the association between pay dispersion and collective bargaining regimes (Plasman et al, 2007); changes of labour market regulation, including collective bargaining across countries (Dølvik et al, 2018); the gap between private and public wages (Castro et al, 2013); or inter-firm wage differentials (Simón, 2010). Research on patterns of compensation policies is almost always limited to single countries (Suleman et al, 2019; Sgobbi, 2013). It is known that firms’ compensation policies reflect the norms and assumptions of societies and respond to labour market regulations (Pedrini, 2016).…”

Section: Introductionmentioning

confidence: 99%

“…The former consists of differences between job levels and attempts to reward skills and other individual attributes, while vertical dispersion is used to give jobs (tasks) different value. Other examples of dual models include high-pay versus low-pay (Abowd et al, 1999; Sgobbi, 2013). Efficiency wage models predict that organisations benefit from paying higher wages by attracting more productive candidates (Akerlof, 1970).…”

Section: Introductionmentioning

confidence: 99%

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Compensation policies and comparative capitalisms

Suleman

Duarte

Brewster³

et al. 2022

European Journal of Industrial Relations

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A widespread rhetoric suggests that market-like rules dominate employment relationships, and particularly compensation, but empirical evidence is inconclusive. This research examines organisations’ compensation policies in clusters of European capitalist economies to test such a hypothesis. Four fuzzy clusters emerged from data, namely, Standard, Internalised, Competitive and Incentive, which illustrates a division between organisation- and market-based models. Collective pay rules characterise organisation-based model, and this is the predominant model in all countries except for the liberal market economies. Firms from different models of capitalism rely on internal labour market pay rules, suggesting that the scope of the liberal market system is narrow. Differences within clusters of capitalist economies suggest a role for agency and hidden labour market specificities in each grouping. The similarities of pay policies open room to identifying capitalist economies differently.

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Section: Discussionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Compensation policies and comparative capitalisms

Suleman

Duarte

Brewster³

et al. 2022

European Journal of Industrial Relations

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“…Cluster analysis, an ex post multivariate identification technique that allows for bi-unique correspondence between observations and groups, seems to be a suitable tool to identify wage policy patterns (see, e.g. Sloane et al, 1993;Drago, 1995;Sgobbi, 2013;Suleman et al, 2013). Compared to other quantitative tools, cluster analysis allows capturing non-linear interactions among key drivers of wage policies that are hard to test in traditional empirical specifications.…”

Section: Empirical Strategy and Datamentioning

confidence: 99%

Wage policy models: what implications for vulnerable employees?

Sgobbi

2015

International Journal of Manpower

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Purpose – This paper explores the impact of the employer’s wage policy on the wage dynamics of vulnerable groups of employees at large firms, including younger employees, employees on fixed-term contracts and employees who take parental leave.\ud Design/methodology/approach – The first step of the analysis identifies the wage policy models adopted by a sample of large Italian companies by means of a cluster analysis based on firm-level variables that describe the wage level, wage structure and wage dynamics. The second step estimates the impact of the employer’s wage policy on the wage growth path of matched employees, paying particular attention to groups of vulnerable workers.\ud Findings – The cluster analysis identifies four clusters whose characteristics reflect ideal types suggested by the literature. The 2SLS wage regressions that examine the impact of the employer’s wage policy model on a matched employee’s wage five years later confirm that the initial employer’s wage policy is a significant determinant of wage dynamics. However, the observed patterns significantly differ between the whole sample and the examined groups of vulnerable employees.\ud Originality/value – Despite consistent evidence of negative labour market outcomes for vulnerable employees, the impact of firm characteristics on segregation into disadvantaged groups is still under-researched. This paper provides new evidence of how the employer’s wage policy impacts the wage growth path of disadvantaged employees and highlights critical dimensions to reduce the risk of segregation into less favourable segments of the labour market

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Wage policy patterns at the firm level: an analysis on Italian medium and large firms

Cited by 2 publications

References 35 publications

Compensation policies and comparative capitalisms

Compensation policies and comparative capitalisms

Wage policy models: what implications for vulnerable employees?

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