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HRM Practices and the Within-Firm Gender Wage Gap


  • Nabanita Datta Gupta and Tor Eriksson are at Aarhus University.


The effect of HRM practices on the within-firm gender gap in wages in manufacturing is investigated merging a 1999 survey on work practices among Danish firms to matched employer–employee panel data. Self-managed teams, project organization and job rotation schemes are the most widely introduced practices. Accounting for non-randomness in adoption, the pay gap is reduced among hourly paid workers but increases among salaried workers. Considering practices individually, wage gains from adoption accrue to males except for salaried workers in firms that adopt project organization and for hourly paid workers in firms that introduce quality control circles.