PhD Seminar (Econ)
Date & time
Does the degree of dispersion of wages to a firm’s employees influence its productivity? This research employs survey data from Indonesia over the period 2000–2015 to explore this question. Panel estimation models reveal a non-linear relationship: a positive relationship between wage dispersion and firm productivity up to a certain level, and a negative relationship beyond that level. The findings imply that excessive wage dispersion can harm productivity. The utilised survey data-sets are from Indonesia’s Labour Force Survey and also the Large and Medium Manufacturing Industries Survey.