The purpose of this paper is to estimate the influence of workplace teams on wages and wage dispersion within UK establishments.
Four types of workplace teams are analyzed using linked employer and employee data from the British Workplace Employee Relations Survey.
Workplace teams are positively associated with wages but negatively associated with wage dispersion within establishments. The four team variables examined have the same directional influence on both wages and dispersion suggesting that it is the use of teams that is important not necessarily the particular characteristics of teams that are being used. The role of occupation is also examined as teams may be more likely to form in certain occupations. The team results for both wages and wage dispersion are robust to the inclusion of detailed occupational information.
The influence of workplace teams is examined on both employee wages and wage dispersion within establishments. Additionally, the paper extends the previous empirical literature on teams by controlling for occupations at a fine level of detail not previously explored.
Thanks are expressed to John S. Heywood, Scott Drewianka, J. Larson and participants at the University of Wisconsin-Milwaukee labor economics seminar.
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