The author's affiliation is ILR School, Cornell University, 379 Ives Hall, Ithaca, NY, 14853. E-mail: firstname.lastname@example.org.
Compensation Policy and Quit Rates: A Multilevel Approach Using Benchmarking Data
Article first published online: 28 SEP 2011
© 2011 The Regents of the University of California
Industrial Relations: A Journal of Economy and Society
Volume 50, Issue 4, pages 656–677, October 2011
How to Cite
RIDDELL, C. (2011), Compensation Policy and Quit Rates: A Multilevel Approach Using Benchmarking Data. Industrial Relations: A Journal of Economy and Society, 50: 656–677. doi: 10.1111/j.1468-232X.2011.00656.x
- Issue published online: 28 SEP 2011
- Article first published online: 28 SEP 2011
Using unique linked employee–employer benchmarking data, the paper estimates the impact of compensation policy on quit rates using multilevel models. The analysis examines several aspects of an organization’s compensation policy with a focus on the effect of pay dispersion between employees at the same level in the firm hierarchy, as well as pay dispersion throughout the hierarchy. Overall, the results indicate that firms with egalitarian pay structures have lower quit rates, a finding that is robust to a large set of empirical specifications.