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  • Subject

    wage compression

    Definition of wage compression: Pay inequities that arise when new employees demand and get wages higher than those being paid to the current employees.
    Authorwmw (386353) 21 May 14, 16:30
    Die Definition aus dem OP findet sich auch hier :

    ... hier gibt es eine leicht andere Definition :
    Wage compression refers to the empirical regularity that firms, given their wage policies, prefer better workers over poorer workers for any given job. This implies that more productive workers are relatively underpaid, compared to less productive workers holding the same job. Frazis and Loewenstein (2006)[1] find that “only 32 percent of differences in starting productivity are reflected in differences in starting wages,” and that “productivity growth of 10 percent results in wage growth of only 2.9 per cent.” ...

    ... eine ausführlichere Beschreibung gibt es hier :
    ... Simply put, wage compression occurs within a company when the newer (or lesser skilled) workers’ wages rise and the wages of existing (or more experienced) workers don’t. The result is newer (or lesser skilled) workers being paid as much, or nearly as much, as existing or more skilled workers–creating wage compression and what kind of problems a 24% increase at the bottom will cause within a companies’ compensation plans throughout the U.S.
    In some cases, if newer (or lesser skilled) workers’ wages are raised above existing (or more skilled) workers, then there is wage inequity.
    In either of the above cases–wage compression or wage inequity–when they occur, it creates tremendous problems within a company. ...
    #1Author no me bré (700807) 21 May 14, 17:58
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