Logo
Munich Personal RePEc Archive

Flattening Firms and Wage Distribution

Jin, Xin (2014): Flattening Firms and Wage Distribution.

[thumbnail of MPRA_paper_58485.pdf]
Preview
PDF
MPRA_paper_58485.pdf

Download (156kB) | Preview

Abstract

This article studies the consequences of firm delayering on wages and the wage distribution inside firms. I consider a job-assignment model with asymmetric information and a slot constraint. The model predicts that more efficient firms are not necessarily larger than less efficient firms if firms are allowed to adjust their internal organizational structure through delayering. After delayering, wages at all levels increase and the wage distribution becomes more unequal. These predictions match a set of empirical findings in recent studies that are not well explained by existing theories.

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.