Worker flows, job flows and establishment wage differentials : analyzing the case of France

Abstract : We address the relation between establishment wage differentials and worker flows, i.e. the churning rate and the quit rate. Our analysis is based on a linked employer-employee dataset covering the French private non-farm sector from 2002 to 2005. Our estimations support the hypothesis that wage premium is an efficient human resource management tool to stabilize workers : churning rates are lower in high-paying firms due to lower quit rates. We further show that the relation is not linear, and it differs among skill groups and according to establishment size : it is strongest for low-wage levels, for low-skilled workers and in large establishments.
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Submitted on : Wednesday, May 18, 2011 - 11:36:34 AM
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Richard Duhautois, Fabrice Gilles, Héloïse Petit. Worker flows, job flows and establishment wage differentials : analyzing the case of France. 2011. ⟨halshs-00593952⟩

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